Some digital asset industry advocates are pushing back against a provision in a $56 billion state budget passed by the Illinois General Assembly on Monday, due to its impact on crypto users.\u00a0<\/p>\n
In a Senate bill included<\/a> as part of the Illinois state budget for the fiscal year 2027, lawmakers proposed a 0.2% tax on crypto transactions, to be imposed by the \u201cdigital asset broker making or effectuating the sale of the digital asset business activity.\u201d The 1624-page bill, part of the revenue and tax package to fund the state\u2019s 2027 budget, passed along party lines early on Monday.<\/p>\n Senate Bill 3019. Source: <\/em>Illinois General Assembly<\/em><\/a><\/p>\n The measure, described as a \u201cprivilege tax\u201d within the Digital Asset Privilege Tax Act amendment to the bill, included registration requirements for any entity operating as a digital asset broker in Illinois. Brokers who failed to follow the guidelines from Jan. 1 could be found guilty of a Class 3 felony in the state and subject<\/a> to a prison sentence of two to five years and fines up to $25,000.<\/p>\n Passed by the state general assembly on Monday, the budget bill still needs Governor JB Pritzker\u2019s signature before becoming law. Pritzker made<\/a> several public statements signaling that he plans to sign the bill soon, but had not done so as of Friday morning. Lawmakers expect the crypto tax to generate $60 million for the state.<\/p>\n Related: <\/strong><\/em>Crypto industry ties were a liability in Illinois primary<\/strong><\/em><\/a><\/p>\n This crypto tax measure has prompted accusations from industry advocates of \u201cburying\u201d the rule within a massive budget proposal. The Digital Chamber and Illinois Blockchain Association penned<\/a> a letter on Wednesday urging the state to reject the Digital Asset Privilege Tax Act, claiming that it would be \u201ceconomically destructive\u201d and gave the industry no notice of its intentions.<\/p>\n \u201cNo other state has imposed a similar tax, and the lack of stakeholder engagement surrounding this proposal raises significant concerns,\u201d said<\/a> The Digital Chamber in a Thursday X post.<\/p>\n Source: <\/em>The Digital Chamber<\/em><\/a><\/p>\n The crypto tax proposal in Illinois\u2019 budget followed Pritzker\u2019s signing of an executive order<\/a> banning state employees from betting on prediction market event contracts with companies such as Kalshi and Polymarket. The EO, signed on April 21, came in response to concerns elected officials could use the platforms \u201cfor personal enrichment and advantage based on access to nonpublic information.\u201d<\/p>\n Magazine: <\/strong><\/em>Bitcoin miners are pivoting to AI, so why is the hashrate near ATHs?<\/strong><\/em><\/a><\/p>\n<\/div>\n![\"\"](\"https:\/\/s3-images.ctmedia.io\/media\/content\/screenshot-2026-06-05-at-120019-pm.png\")
<\/figure>\nIllinois governor goes after insider trading on prediction markets <\/h2>\n