Signing the first-ever 0.2% crypto transaction tax in the U.S., Illinois sparks a major earthquake in the Web3 industry

The state of Illinois in the United States officially signed into law, becoming the first state in the country to impose a 0.2% tax rate on cryptocurrency transactions. This move has sparked strong opposition from the crypto industry and industry leaders.

Illinois officially levies a crypto transaction tax, triggering industry backlash

Recently, Illinois Governor J.B. Pritzker officially signed the "Digital Asset Privilege Tax Act," making it the first state in the U.S. to establish a dedicated tax on cryptocurrency transactions. According to the bill, digital asset transfers, trades, and exchanges that meet certain conditions will be taxed at a rate of 0.2%.

This bill was included in the state's latest budget proposal. Supporters believe it will help expand revenue sources and integrate digital asset activities into the existing tax regulatory framework. However, after the bill's passage, it quickly provoked strong opposition from the crypto industry, with multiple industry organizations and corporate leaders publicly calling for a review of the policy.

Some market observers believe this is the first case in the U.S. where a dedicated tax has been levied directly on cryptocurrency trading activities, making it highly indicative.

Industry criticizes it as stifling innovation, with trading costs likely to rise across the board

The crypto industry generally believes that the new law will increase trading costs and weaken market liquidity. Many industry players point out that crypto investors already bear existing taxes such as capital gains tax and income tax, and adding a trading tax could further restrict market activity.

Some critics note that blockchain ecosystems involve numerous on-chain transfers, cross-chain operations, and DeFi activities. If all these activities face additional taxes, it will increase operational costs for developers and companies, and may also impact the willingness to launch innovative projects.

The industry is also worried that some companies might choose to relocate their operations to states with more favorable regulatory and tax environments, further reducing Illinois's attractiveness for blockchain companies.

Michael Saylor criticizes the policy as a mistake, with markets fearing other states may follow suit

Strategy founder Michael Saylor publicly criticized the bill after its passage, stating that imposing additional taxes on Bitcoin and crypto trading is a major mistake. He believes the U.S. should encourage digital asset innovation rather than raising barriers to market participation through new taxes.

Image source: X/@saylor Strategy founder Michael Saylor publicly criticizes the bill after its passage, calling taxing Bitcoin and cryptocurrency trading an重大错误

In addition to Saylor, several executives from exchanges, industry advocates, and crypto community leaders have expressed similar views. They believe regulatory focus should be on combating fraud, increasing transparency, and protecting consumers, rather than adding new trading costs.

The market is more concerned about the signaling effect. If Illinois successfully generates stable revenue through crypto transaction taxes, other states might follow suit with similar systems, further changing the development environment of the U.S. crypto industry.

Diverging regulatory approaches across U.S. states, crypto industry enters a new phase

In recent years, U.S. states have shown increasingly divergent policy directions toward cryptocurrencies. Texas, Wyoming, and other states continue to attract mining and blockchain companies through friendly regulations; some states choose to strengthen regulation and tax management, aiming to balance industry growth with risk control.

Illinois's legislation reflects that some local governments are beginning to view digital asset markets as new sources of revenue, and also indicates that the crypto industry is gradually entering a more mature regulatory stage. Whether this bill will serve as a reference for other states, and whether companies will adjust their operations accordingly, will be important indicators for the future development of the U.S. crypto industry.