CFTC Chair Criticizes Illinois' 0.2% Crypto Transaction Tax, Calling It a Barrier to Technological Progress

Odaily Odaily reports that US CFTC Chair Michael Selig criticized Illinois for passing a 0.2% crypto transaction tax, stating that the state's lawmakers have "put the brakes on technological progress" and put local residents at a disadvantage in the future of digital asset innovation.

Illinois Governor JB Pritzker signed the Digital Asset Tax Act last month as part of the state's fiscal year 2027 budget plan. The bill imposes a 0.2% tax on crypto transactions, scheduled to take effect in January 2027.

Selig stated that just as the internet changed how information is transmitted, blockchain will change how value is transferred. In the future, almost all assets — from commodities and currencies to stocks and bonds — could be tokenized. He believes Illinois' move runs counter to Washington's push for digital asset innovation and could drive capital, businesses, and tech talent to other jurisdictions.

Previously, industry groups such as the Crypto Council for Innovation, Digital Chamber, and the Illinois Blockchain Association also strongly opposed the tax, warning it could become one of the most stringent and anti-crypto state-level tax regimes in the US. (The Block)