{"id":33732,"date":"2026-07-03T05:10:45","date_gmt":"2026-07-03T05:10:45","guid":{"rendered":"https:\/\/bitunikey.com\/news\/cftc-chair-blasts-illinois-over-punitive-crypto-tax\/"},"modified":"2026-07-03T05:11:03","modified_gmt":"2026-07-03T05:11:03","slug":"cftc-chair-blasts-illinois-over-punitive-crypto-tax","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/cftc-chair-blasts-illinois-over-punitive-crypto-tax\/","title":{"rendered":"CFTC chair blasts Illinois over \u2018punitive\u2019 crypto tax"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">CFTC Chair Michael Selig criticized Illinois lawmakers over a new 0.2% tax on crypto transactions, saying the state had moved against financial technology at the wrong time.\u00a0<\/p>\n<div id=\"cn-block-summary-block_5f2dcec9d35e70fe0c1afc1065ac4602\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Illinois\u2019 0.2% crypto tax drew sharp CFTC criticism before its planned 2027 start date.<\/li>\n<li>The law requires broker registration, monthly reports, and tax collection on covered digital asset activity.<\/li>\n<li>Federal crypto tax and market structure talks are moving while Illinois pursues its own rule.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>In a July 1 <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/SpeechesTestimony\/seligstatement070126\" target=\"_blank\" rel=\"nofollow\">statement<\/a>, Selig said Illinois lawmakers \u201cslammed the brakes on technological progress\u201d when they approved the measure.<\/p>\n<p>The tax forms part of Illinois\u2019 fiscal 2027 budget and is set to take effect on Jan. 1, 2027. It applies to certain digital asset activity carried out by brokers, including exchange, transfer, custody, and wallet services. The rule has drawn criticism from crypto firms, policy groups, and some market figures.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\"><strong>Selig says state risks falling behind<\/strong><\/h2>\n<p>Selig said blockchains could change how value moves across markets, much as the internet changed how information moves. He argued that tokenized assets may cover commodities, currencies, stocks, and bonds. His statement said Illinois could place residents and businesses at a disadvantage if the state taxes crypto transfers differently from other financial activity.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Illinois lawmakers have placed the future of Chicago as a financial market hub at risk by instituting a \u201csin tax\u201d on blockchain technology. The decelerationist law goes so far as to tax transfers of crypto assets that generate no economic gain. Subjecting Illinois residents to\u2026<\/p>\n<p>\u2014 Mike Selig (@ChairmanSelig) <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/ChairmanSelig\/status\/2072669349941305546?ref_src=twsrc%5Etfw\">July 2, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>The CFTC chair also said Illinois lawmakers \u201cdecided they know better\u201d than federal lawmakers working on crypto market rules. His comments came as Washington continues to review market structure bills, tax proposals, and agency roles. The remarks show a growing split between state-level tax policy and federal efforts to set national digital asset rules.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Brokers face new duties<\/strong><\/h2>\n<p>Illinois\u2019 Digital Asset Tax Act requires brokers to register with the Illinois Department of Revenue before covered activity begins. Brokers must collect the tax as a separate line item and file monthly reports on covered digital asset activity.<\/p>\n<p>The law can also reach firms outside Illinois if they serve users in the state. Tax advisers have said customer records, mailing addresses, IP addresses, and other data may help decide whether activity falls under Illinois rules. That has raised questions about how exchanges, wallet firms, and custody providers will track and apply the tax in practice.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Industry criticism grows<\/strong><\/h2>\n<p>Previously, crypto.news reported that Strategy co-founder Michael Saylor called the Illinois tax a \u201cBig Mistake\u201d after Governor JB Pritzker signed the budget. Industry groups also warned that the law could raise costs for users and push crypto firms away from the state.<\/p>\n<p>Some critics have focused on the design of the tax. They argue that it applies to activity itself, not only to profits or capital gains. Others have raised concerns about routine wallet transfers, broker reporting systems, and whether the rule treats digital assets differently from stocks, bonds, or derivatives.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Federal talks add pressure<\/strong><\/h2>\n<p>The Illinois dispute comes while Congress reviews broader crypto tax rules. As previously reported, lawmakers have split the Digital Asset PARITY Act into seven tax discussion drafts covering stablecoin payments, mining, staking, lending, wash-sale rules, charitable donations, and disclosure duties.<\/p>\n<p>Moreover, Federal agencies are also reviewing crypto market rules. The SEC and CFTC opened a joint rules review covering derivatives, margining, and market structure questions. Against that backdrop, Selig\u2019s criticism frames the Illinois tax as a state-level move that may clash with wider federal attempts to build clearer rules for digital assets.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>CFTC Chair Michael Selig criticized Illinois lawmakers over a new 0.2% tax on crypto transactions, saying the state had moved against financial technology at the wrong time.\u00a0 Summary Illinois\u2019 0.2%&hellip;<\/p>\n","protected":false},"author":1,"featured_media":30677,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-33732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/33732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=33732"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/33732\/revisions"}],"predecessor-version":[{"id":33733,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/33732\/revisions\/33733"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/30677"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=33732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=33732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=33732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}