CFTC Chair Michael Selig isn’t holding back. He says Illinois lawmakers “decided they know better” by passing a 0.2% tax on crypto transactions.
The law puts a per-trade tax on digital asset transactions in the state. Selig argues it’s the wrong move — that it’ll drive crypto activity out of Illinois rather than regulating it sensibly.
He’s got a point. States that pile new taxes on emerging industries tend to see those industries pack up. Crypto is mobile. You don’t need a physical presence to trade. If Illinois makes it expensive, traders can just route through somewhere else.
The question is whether the state cares. Lawmakers obviously think the revenue is worth it. But Selig’s criticism carries weight — he’s the top federal regulator for crypto derivatives. When he says a state policy is counterproductive, people listen.
This isn’t the first state-level crypto tax fight, and it won’t be the last. The tension between federal guidance and state experimentation is only going to get louder.
