Illinois lawmakers have approved a fiscal year 2027 budget bill that introduces a new 0.2% tax on cryptocurrency transactions and imposes felony charges for unregistered digital asset brokers. The measure, included in the state’s $56 billion budget package, passed along party lines on Monday and now awaits Governor JB Pritzker’s signature.
Under the Digital Asset Privilege Tax Act, any entity facilitating covered crypto transactions must register with the state. Brokers operating without registration after January 1 could face Class 3 felony charges, punishable by two to five years in prison and fines up to $25,000. State budget documents estimate the tax could generate roughly $60 million in revenue.
Industry groups quickly opposed the proposal. The Digital Chamber and the Illinois Blockchain Association issued a joint letter urging Governor Pritzker to reject the tax, arguing it would harm local businesses and residents at a time of accelerating digital asset adoption. They noted that no other U.S. state imposes a comparable levy and criticized the lack of stakeholder consultation, especially since the tax was embedded in a 1,624-page budget bill rather than debated as standalone legislation.
Simultaneously, federal lawmakers are exploring crypto tax policies, with the U.S. House Ways and Means Committee releasing discussion drafts on stablecoin payments, staking rewards, mining income, and DeFi lending ahead of a June 9 hearing. Illinois’ move sets a potential precedent as states increasingly scrutinize digital asset oversight, although Governor Pritzker has indicated he intends to sign the budget package.
