{"id":20667,"date":"2026-06-17T18:35:59","date_gmt":"2026-06-17T18:35:59","guid":{"rendered":"https:\/\/cryptoted.net\/index.php\/2026\/06\/17\/michael-saylor-blasts-illinois-crypto-tax-as-big-mistake\/"},"modified":"2026-06-17T18:35:59","modified_gmt":"2026-06-17T18:35:59","slug":"michael-saylor-blasts-illinois-crypto-tax-as-big-mistake","status":"publish","type":"post","link":"https:\/\/cryptoted.net\/index.php\/2026\/06\/17\/michael-saylor-blasts-illinois-crypto-tax-as-big-mistake\/","title":{"rendered":"Michael Saylor blasts Illinois crypto tax as &#8220;Big Mistake&#8221;"},"content":{"rendered":"<p> <br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/media.crypto.news\/2024\/07\/crypto-news-What-is-crypto-tax-calculator-option01.webp\" \/><\/p>\n<div>\n<p class=\"is-style-lead\">Illinois has approved a new 0.2% tax on crypto transactions that state officials estimate could generate up to $60 million annually, prompting public criticism from Strategy co-founder Michael Saylor and several industry groups.<\/p>\n<div id=\"cn-block-summary-block_91a0cc4c4e979eea9a49f6642f266eaa\" class=\"cn-block-summary\">\n<p>\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/p>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Michael Saylor called Illinois\u2019 new 0.2% crypto transaction tax a \u201cBig Mistake\u201d after it became law.<\/li>\n<li>Industry groups warned the tax could hurt crypto businesses and push innovation outside Illinois.<\/li>\n<li>The law requires broker registration and monthly reporting and applies to some out-of-state firms serving Illinois users.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>In a June 17 X <a href=\"https:\/\/x.com\/saylor\/status\/2067271597166055496\" target=\"_blank\" rel=\"nofollow\">post<\/a>, Saylor called Governor J.B. Pritzker\u2019s decision to sign the Digital Asset Privilege Tax Act into law a \u201cBig Mistake.\u201d The measure, which <a href=\"https:\/\/crypto.news\/illinois-becomes-first-state-to-tax-crypto-transactions-this-way\/\" target=\"_blank\">takes effect<\/a> on Jan. 1, 2027, imposes a 0.2% levy on covered digital asset transactions, including transfers between wallets.<\/p>\n<p>State lawmakers approved the tax as part of Illinois\u2019 budget package. Alongside the crypto provisions, the legislation also includes a 1.75% tax on sports bets placed through prediction market platforms such as Polymarket.<\/p>\n<p>The law arrives as lawmakers in Washington continue discussing digital asset taxation at the federal level. Earlier this month, the House Ways and Means Committee <a href=\"https:\/\/crypto.news\/house-committee-unveils-crypto-tax-plan-that-could-reshape-defi\/\" target=\"_blank\">released<\/a> seven discussion drafts covering various aspects of crypto tax policy.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Industry groups warn the law could drive firms away<\/h2>\n<p>Opposition to the Illinois measure began shortly after it cleared the legislature. In a joint letter, the Digital Chamber and the Illinois Blockchain Association <a href=\"https:\/\/crypto.news\/illinois-lawmakers-approve-crypto-tax-with-felony-penalties\/\" target=\"_blank\">urged<\/a> state officials to reject the proposal, arguing that it could harm the state\u2019s digital asset sector.<\/p>\n<p>According to the groups, no other U.S. state currently imposes a comparable tax on crypto transactions. They also criticized the legislative process, noting that the proposal was inserted into a 1,624-page budget bill rather than advancing as standalone legislation.<\/p>\n<p>Separately, the Crypto Council for Innovation sent a letter to Governor Pritzker requesting a veto. The organization argued that the tax departs from traditional tax systems because it applies to digital asset activity itself rather than gains, profits, or income.<\/p>\n<p>CCI also stated that the legislation does not include exceptions for routine transactions or a de minimis threshold that would exempt small transfers from taxation. The group warned that the framework could place an outsized burden on Illinois residents using digital assets and discourage companies from building in the state.<\/p>\n<p>Adding to those concerns, Miles Jennings, head of policy and general counsel at a16z Crypto, wrote that there is \u201cno comparable state financial transaction tax\u201d on stocks, bonds, or derivatives anywhere in the United States.<\/p>\n<h2 class=\"wp-block-heading\">Brokers face new registration and reporting requirements<\/h2>\n<p>Beyond the tax itself, the legislation creates new compliance obligations for digital asset brokers.<\/p>\n<p>According to tax advisory firm BDO, the rules can apply not only to Illinois-based businesses but also to out-of-state brokers that generate at least $100,000 in annual receipts from Illinois customers.<\/p>\n<p>BDO <a href=\"https:\/\/crypto.news\/illinois-becomes-first-state-to-tax-crypto-transactions-this-way\/\" target=\"_blank\">noted<\/a> that state sourcing rules are broad and may rely on customer location data, account records, mailing addresses, IP addresses, or other indicators showing Illinois as the primary place of use.<\/p>\n<p>Under the law, brokers must collect the tax as a separate line item, maintain records, and file monthly reports covering the previous month\u2019s activity. Registration requirements must also be completed before the Jan. 1, 2027, start date, with registrations renewing automatically unless canceled or revoked.<\/p>\n<p>Compliance questions remain unresolved. Commenting on the legislation, litigator Joe Carlasare pointed to uncertainty around wallet transfers and sales, asking whether moving Bitcoin from self-custody to Coinbase and immediately selling it would create one taxable event or two.<\/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\u2019 new digital asset tax leaves a key issue open: if you move BTC from self-custody to Coinbase and immediately sell, is that one taxable event or two? <\/p>\n<p>The transfer and sale could be viewed as separate statutory activities under the text of PA 104-0464. However, it may\u2026<\/p>\n<p>\u2014 Joe Carlasare (@JoeCarlasare) <a rel=\"nofollow\" href=\"https:\/\/x.com\/JoeCarlasare\/status\/2067269018096976270?ref_src=twsrc%5Etfw\">June 17, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>The Illinois measure has also intensified existing tensions between the state and parts of the crypto industry. Illinois is already facing a <a href=\"https:\/\/crypto.news\/cftc-and-doj-sue-three-states-over-prediction-market-oversight\/\" target=\"_blank\">lawsuit<\/a> from the CFTC over prediction markets after state regulators attempted to restrict platforms including Polymarket and Kalshi.<\/p>\n<p>With the tax now signed into law, attention has turned from legislative debate to how brokers and users will prepare for the new rules before 2027.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/crypto.news\/michael-saylor-blasts-illinois-crypto-tax-as-big-mistake\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Illinois has approved a new 0.2% tax on crypto transactions that state officials estimate could generate up to $60 million annually, prompting public criticism from Strategy co-founder Michael Saylor and several industry groups. Summary Michael Saylor called Illinois\u2019 new 0.2% crypto transaction tax a \u201cBig Mistake\u201d after it became law. Industry groups warned the tax [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":20413,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[23],"tags":[],"kronos_expire_date":[],"class_list":["post-20667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"_links":{"self":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/20667","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/comments?post=20667"}],"version-history":[{"count":0,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/posts\/20667\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media\/20413"}],"wp:attachment":[{"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/media?parent=20667"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/categories?post=20667"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/tags?post=20667"},{"taxonomy":"kronos_expire_date","embeddable":true,"href":"https:\/\/cryptoted.net\/index.php\/wp-json\/wp\/v2\/kronos_expire_date?post=20667"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}