Illinois' bill is pretty tough, requiring service providers to withhold and pay taxes on behalf of others. The industry organizations' collective opposition didn't stop it, and the governor signed it into law. It seems like U.S. states are about to start a tax competition.

CryptoWorld News reports that Illinois Governor JB Pritzker signed the Digital Asset Tax Act on Tuesday. The act will impose a 0.2% tax based on transaction value on digital assets for customers in Illinois, and it will take effect on January 1, 2027. The tax targets crypto service providers, requiring them to collect and remit the tax on behalf of their customers. Industry organizations such as the Crypto Council for Innovation, the Digital Chamber, and the Illinois Blockchain Association have expressed opposition to the bill.