Illinois passes 'most anti-crypto law in America,' industry groups push back - Cryptopolitan

Crypto Insight Summary: * Governor JB Pritzker signed Illinois’ FY2027 budget into law on June 16, embedding a brand-new 0.2% “privilege tax” on crypto transactions inside Senate Bill 3019. * The Crypto Council for Innovation, the Digital Chamber, and a16z Crypto’s Miles Jennings have all called it the most anti-crypto measure passed by any U.S. * The tax has no carve-out for moving coins between your own wallets, and brokers who skip registration face felony charges starting January 1, 2027. **Illinois just signed into law what crypto advocates are calling the harshest anti-crypto legislation passed by any U.S. state, a tax law that charges residents simply for transacting using digital assets, with no exemption even for transferring coins between their own wallets.** On Tuesday, Illinois Governor JB Pritzker signed Senate Bill 3019 into law, locking in a $55.9 billion budget for the next fiscal year. Crypto Industry groups are particularly discontented with Article 3 of the bill, known as the Digital Asset Privilege Tax Act. The Digital Asset Privilege Tax Act will charge a 0.2% tax on all digital asset business activity. The bill will be effective from 1st January 2027, and some analysts project the trend may well spill over to neighboring states. On June 16th, the Crypto Council for Innovation reportedly reached out with a [letter](https://x.com/crypto_council/status/2066993835977453873)to Governor Pritzker before he signed the bill to scrap Article 3 entirely. The council pointed out that Article 3 could be violating federal laws, as it categorically targets blockchain technology as a medium for asset transfer, favoring TradFi users. Crypto Insight Analysis: Direction: Bearish ETH / Bearish USDC / Bearish USDC / Bearish SOL Impact: Major Impact Horizon: Long-term (1 quarter-1 year) Reasoning: Illinois' anti-crypto tax law sets a precedent for other states, potentially causing outflows from crypto markets.