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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.&nbsp;
In a Senate bill <a href="https://ilga.gov/documents/legislation/104/SB/PDF/10400SB3019lv.pdf" rel="noopener noreferrer nofollow">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 “digital asset broker making or effectuating the sale of the digital asset business activity.” The 1,624-page bill, part of the revenue and tax package to fund the state’s 2027 budget, passed along party lines early on Monday.<img alt="Crypto tax in Illinois FY2027 budget is one step away from becoming law" height="1152" src="https://s3-images.ctmedia.io/media/content/screenshot-2026-06-05-at-105457-am.png" width="1474">
Senate Bill 3019. Source: <a href="https://ilga.gov/documents/legislation/104/SB/PDF/10400SB3019lv.pdf" rel="noopener noreferrer nofollow">Illinois General Assembly</a>
The measure, described as a “privilege tax” 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 <a href="https://www.dolciandweiland.com/class-three-felony/" rel="noopener noreferrer nofollow">subject</a> to a prison sentence of two to five years and fines up to $25,000.
Passed by the state general assembly on Monday, the budget bill still needs Governor JB Pritzker’s signature before becoming law. Pritzker <a href="https://x.com/GovPritzker/status/2062711351315742791" rel="noopener noreferrer nofollow">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.
Related: <a href="https://cointelegraph.com/features/crypto-industry-ties-liability-illinois-primary" rel="noopener noreferrer nofollow">Crypto industry ties were a liability in Illinois primary</a>
This crypto tax measure has prompted accusations from industry advocates of “burying” the rule within a massive budget proposal. The Digital Chamber and Illinois Blockchain Association <a href="https://x.com/DigitalChamber/status/2062550366785241551" rel="noopener noreferrer nofollow">penned</a> a letter on Wednesday urging the state to reject the Digital Asset Privilege Tax Act, claiming that it would be “economically destructive” and gave the industry no notice of its intentions.
“No other state has imposed a similar tax, and the lack of stakeholder engagement surrounding this proposal raises significant concerns,” <a href="https://x.com/DigitalChamber/status/2062550366785241551" rel="noopener noreferrer nofollow">said</a> The Digital Chamber in a Thursday X post.<img alt="Crypto tax in Illinois FY2027 budget is one step away from becoming law" height="734" src="https://s3-images.ctmedia.io/media/content/screenshot-2026-06-05-at-120019-pm.png" width="918">
Source: <a href="https://x.com/DigitalChamber/status/2062550366785241551/photo/1" rel="noopener noreferrer nofollow">The Digital Chamber</a>
<h2 id="illinois-governor-goes-after-insider-trading-on-prediction-markets">Illinois governor goes after insider trading on prediction markets</h2>
The crypto tax proposal in Illinois’ budget followed Pritzker’s <a href="https://cointelegraph.com/news/ny-governor-signs-eo-on-prediction-markets-following-illinois" rel="noopener noreferrer nofollow">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 “for personal enrichment and advantage based on access to nonpublic information.”
Magazine: <a href="https://cointelegraph-magazine.com/bitcoin-miners-fleeing-ai-hashrate-near-ath/" rel="noopener noreferrer nofollow">Bitcoin miners are pivoting to AI, so why is the hashrate near ATHs?</a>

Crypto tax in Illinois FY2027 budget is one step away from becoming law

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