Illinois passes a 0.2% crypto transaction tax; CFTC chair calls it planning "from an ivory tower"

Illinois has enacted a 0.2% tax on crypto transactions, and the head of the federal Commodity Futures Trading Commission has responded with an op-ed accusing state lawmakers of "slamm[ing] the brakes on technological progress."

The measure, the Digital Asset Tax Act, was signed by Governor JB Pritzker last month as part of the state's FY2027 budget, according to The Block. It imposes a 0.2% levy on crypto transactions and is scheduled to take effect in January 2027. Beyond the rate, the effective date and the budget vehicle, the mechanics of how the tax will be assessed and collected are not spelled out in the reporting available — industry groups have themselves "raised questions about how the law will be implemented in practice," per The Block.

CFTC Chair Michael Selig's criticism came in a statement published as an op-ed in the Washington Times. "Just as the internet revolutionized the transfer of information, blockchains will revolutionize the transfer of value," Selig wrote, arguing that "anything and everything is likely to be 'tokenized'" and that "Illinois lawmakers seeking to plan the state's economy from an ivory tower have placed their constituents at a significant disadvantage." He framed the state as diverging from Washington, where lawmakers are working on crypto market-structure legislation: "Illinois lawmakers decided they know better than the federal lawmakers who have been working on delivering clarity to crypto asset markets for years."

Key facts

• Tax rate: 0.2% on crypto transactions (The Block, describing the Digital Asset Tax Act).
• Signed into law last month by Gov. JB Pritzker as part of Illinois' FY2027 budget (The Block).
• Effective date: January 2027 (The Block).
• CFTC Chair Michael Selig's criticism appeared as a statement/op-ed in the Washington Times (The Block, citing both).
• Some in the industry have labeled it the "most punitive digital asset tax in the country" (unnamed critics, via The Block).

The real-world read

A few things to hold at arm's length. First, sourcing: we have one secondary account here (The Block), which is quoting Selig's own op-ed and statement — we have not independently seen the text of the Digital Asset Tax Act, so the exact base the 0.2% applies to (every transfer? only sales? in-state actors only?) remains unconfirmed. Second, Selig is not a neutral referee: as CFTC chair he is an advocate for the federal light-touch approach, and his "tokenize everything" framing is a policy pitch, not a finding. Third, the "most punitive digital asset tax in the country" line comes from unnamed "industry groups" — interested parties who would pay the tax — and should be read as lobbying, not analysis. Notably absent from the material: any statement from Pritzker's office or Illinois legislators explaining the revenue rationale, so only one side of this argument is on the record here.

This is news reporting, not financial, legal, or tax advice.

Sources

• The Block, Sarah Wynn (2026-07-02) — the sole source for this item: reported the tax's rate, effective date and budget vehicle, and quoted Selig's op-ed and the "most punitive" industry framing. Reputable secondary outlet; note its disclosed ownership (Foresight Ventures is a majority investor), which does not bear on this story. The underlying primary materials — the Digital Asset Tax Act text and Selig's Washington Times op-ed — were not directly reviewed.