CFTC Chair Slams Illinois Over New Crypto Transaction Tax

Commodity Futures Trading Commission Chair Michael Selig criticized Illinois lawmakers for passing a 0.2% tax on crypto transactions, arguing the state is falling out of step with Washington’s approach to digital assets. He said the move effectively halts technological progress within the state and puts residents at a disadvantage as blockchain technology becomes more central to how value moves, much like the internet transformed information sharing.

New Law Signed As Part Of State Budget

The measure, called the Digital Asset Tax Act, was signed by the state’s governor as part of broader budget planning and is set to take effect in January 2027. Industry groups have already pushed back, with some calling it the harshest digital asset tax in the country, and questions remain about how it will actually be enforced.

Federal Versus State Divide Grows

Selig’s comments, published as an op-ed, come while Congress works on major crypto market structure legislation and federal regulators continue shaping their own regulatory stance. He argued Illinois lawmakers chose to act on their own rather than wait for the clarity federal officials have spent years trying to deliver.