The most ironic thing about SB 3019 is that TradFi institutions are unaffected, while it singles out retail investors and builders. The Innovation Crypto Committee’s warning isn’t without reason—state-level taxation oversteps the federal legal red line, and what Miles Jennings pointed out is exactly this hidden risk.

Illinois Governor signs SB 3019, setting the Digital Asset Privilege Tax Act as a routine daily 0.2% cryptocurrency transaction tax. There is no exemption for non-commercial activities, and transfers between personal wallets will also be taxed. The Innovation Crypto Committee warns that this law will severely harm the local economy and is unfair to ordinary crypto users, while traditional financial participants will not be affected. Renowned lawyer Miles Jennings says this move threatens decentralized infrastructure and may violate federal law.