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Illinois governor J.B. Pritzker signed Senate Bill 3019 into law on June 17, introducing a 0.2% tax on cryptocurrency transactions that applies even to transfers between a person’s own wallets.
The legislation, approved in Illinois, introduces a first-of-its-kind tax regime on digital asset transactions, sparking strong opposition from cryptocurrency advocates and legal experts who argue that the measure unfairly targets the sector.
The Most Anti-Crypto Law centers on Article 3 of SB 3019, known as the Digital Asset Privilege Tax Act. The provision imposes a 0.2% tax on crypto transactions and applies even to common non-commercial activities, including transfers between personal wallets. Industry groups contend that the Most Anti-Crypto Law could have significant consequences for digital asset users and companies operating in the state.
Supporters of digital assets say the Most Anti-Crypto Law establishes one of the harshest state-level tax frameworks for cryptocurrencies in the country.
Article 3 of the legislation creates a new tax structure without exemptions for many activities routinely carried out by digital asset holders. According to critics, users may face taxes simply for transferring or storing cryptocurrencies, even when no commercial transaction takes place.
The measure has drawn comparisons to imposing taxes based on the method of communication rather than the activity itself. Opponents argue that the framework differs sharply from the treatment of traditional financial assets such as stocks and bonds.
The debate surrounding the Most Anti-Crypto Law has quickly become one of the most closely watched regulatory developments in the U.S. digital asset sector.
The Crypto Council for Innovation (CCI) issued a strong response following the signing of the legislation, arguing that the Most Anti-Crypto Law could damage Illinois’ competitiveness.
“Illinois Governor Pritzker just signed the most punitive digital asset tax in the country into law. This will create an unprecedented tax regime that disproportionately burdens Illinois residents for simply using digital assets and will drive innovation and builders out of the state.” — Crypto Council for Innovation.
The organization further criticized the legislation for lacking exemptions for common digital asset activities.
“The Act contains no meaningful exemptions for many common activities that digital asset users routinely undertake…” — Crypto Council for Innovation.
In a separate statement, the group compared the policy to taxing communication methods rather than the underlying activity.
“Taxing a transaction based on the medium through which it occurs is akin to taxing correspondence because it is delivered by email rather than by post.” — Crypto Council for Innovation.
Industry representatives argue that the Most Anti-Crypto Law places cryptocurrency users at a disadvantage compared with participants in traditional finance.
Legal analysts have also raised concerns about the implications of the Most Anti-Crypto Law for decentralized technologies.
Prominent crypto attorney Miles Jennings described the measure as one of the most restrictive laws affecting the sector.
“This is one of the most anti-crypto laws in the U.S. It taxes the exchange, transfer, or storage of digital assetsyou buy BTC, you pay a tax; you hold your BTC on Coinbase, you pay a tax; and so on.” — Miles Jennings, Crypto Attorney and Legal Expert.
Jennings argued that the legislation singles out cryptocurrencies in a manner that differs from other financial instruments.
“There is effectively no comparable state financial transaction tax on stocks, bonds, or derivatives anywhere in the country. That means crypto is being singled out in violation of several federal laws.” — Miles Jennings, Crypto Attorney and Legal Expert.
His comments have fueled broader concerns that the Most Anti-Crypto Law may invite legal scrutiny over whether digital assets are being treated differently from traditional financial products.
The signing of SB 3019 comes as lawmakers and regulators across the United States continue to grapple with the growing role of digital assets.
For supporters of cryptocurrencies, the Most Anti-Crypto Law represents a significant shift toward more aggressive state-level regulation. Critics fear that the measure could discourage innovation and investment, while proponents of stricter oversight may view it as a new model for taxing digital asset activity.
The Most Anti-Crypto Law has already become a flashpoint in the broader debate over how cryptocurrencies should be regulated in the United States. As industry groups and legal experts continue to assess its implications, attention is likely to focus on whether similar measures emerge elsewhere and whether the Illinois law faces legal challenges.
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