CFTC Chair Selig Slams Illinois Over New Crypto Transaction Tax

The tax, integrated into the state’s fiscal 2027 budget, is scheduled to take effect on January 1, 2027. It mandates that brokers register with the Illinois Department of Revenue and collect levies on exchange, custody, and wallet services. Unlike capital gains taxes, this measure applies to the activity itself, regardless of whether a transaction generates economic profit. Industry leaders, including Strategy co-founder Michael Saylor, have already labeled the policy a significant error that could drive firms out of the state.

Selig argues that the state is attempting to preempt federal policy at a critical juncture. As Congress debates national market structure and tax frameworks, Illinois’ unilateral action risks creating a fragmented regulatory environment. The law's reach extends to out-of-state entities serving Illinois residents, forcing firms to grapple with complex data tracking requirements for IP addresses and user locations. This state-level push now sits in direct opposition to ongoing federal efforts by the CFTC and SEC to harmonize digital asset rules.