Illinois Governor J.B. Pritzker has signed a new crypto tax bill, SB3019, which includes the Digital Asset Privilege Tax Act imposing a 0.2% levy on digital asset transactions and transfers. Critics argue the law extends far beyond commercial activity — it could apply to moving funds between personal wallets, burdening everyday crypto users.
Wallet-to-Wallet Transfers Under Fire: Scope Sparks Outrage
The Crypto Council for Innovation (CCI) called this the most punitive digital asset tax framework in the United States. The organization warned that state residents could face taxes for routine blockchain actions that have no equivalent in traditional finance. According to CCI, the legislation lacks meaningful exemptions for many activities digital asset users perform regularly, making Illinois less attractive to blockchain companies and developers.
Industry Calls It a 'Tax on Email' by Another Name
CCI compared the tax to charging people for sending emails simply because they are digital rather than mailed. The group argued taxing based on underlying technology creates an uneven standard for digital asset users. The measure disproportionately affects those using crypto for transfers, storage, and other common purposes, the CCI statement said, potentially discouraging participation in the state's digital asset sector.
Legal Expert: Crypto Singled Out vs Stocks and Bonds
Prominent crypto attorney Miles Jennings described it as one of the most anti-crypto laws enacted by a U.S. state. He noted that individuals could face taxes when buying Bitcoin, transferring crypto, or holding assets through certain platforms. Jennings argued Illinois treats digital assets differently from stocks, bonds, and derivatives — none of which face a comparable state-level financial transaction tax. He also suggested the legislation may conflict with federal principles against discriminatory treatment of specific financial instruments. No legal challenge has been announced yet, but industry participants continue to scrutinize the law's potential consequences.
The signing of SB3019 has intensified the debate over how states should regulate and tax digital assets. While Illinois officials move forward with the new framework, industry groups and legal experts maintain the measure will raise costs for users and discourage future blockchain investment in the state.