CFTC Chair: Illinois Crypto "Sin Tax" Legislation Could Threaten Chicago's Financial Center Status

U.S. Commodity Futures Trading Commission (CFTC) Chair Mike Selig posted on X platform, stating that Illinois' legislation imposing a so-called "sin tax" on blockchain technology could jeopardize Chicago's future status as a financial market center. The bill even taxes the transfer of crypto assets that have not generated any economic gains. Mike Selig described it as "slow-down legislation" and said the bill would turn residents' property rights from "inherent rights" into "permission-based privileges."

Mike Selig added that, against the backdrop of blockchain technology continuously reshaping financial markets, choosing to tax crypto wallets over policy options that drive economic growth may historically be seen as a turning point for Chicago's financial development, or even a sign of decline.