The Illinois General Assembly has passed a $56 billion state budget that includes a controversial 0.2% tax on crypto transactions. The measure, part of the Digital Asset Privilege Tax Act, would require digital asset brokers to collect the tax starting January 1. Failure to comply could result in a Class 3 felony charge, carrying a prison sentence of two to five years and fines up to $25,000.
The bill now awaits Governor JB Pritzker's signature, who has indicated he plans to sign it. Lawmakers expect the tax to generate $60 million for the state.
The Digital Chamber and the Illinois Blockchain Association have urged the state to reject the tax, calling it "economically destructive" and criticizing the lack of stakeholder engagement. No other state has imposed a similar tax.
This move follows Governor Pritzker's executive order banning state employees from betting on prediction markets, citing insider trading concerns.