Illinois has enacted a law imposing a 0.2% tax on cryptocurrency transactions, drawing sharp criticism from federal officials. CFTC Chair Michael Selig publicly rebuked the state's move, saying lawmakers 'decided they know better' on crypto policy. The comments highlight growing tension between state-level regulatory action and federal authorities who favor a more unified approach to overseeing digital assets. Selig's remarks suggest concern that a patchwork of state taxes and rules could complicate compliance for crypto businesses and users operating across jurisdictions. The Illinois measure adds to an evolving landscape in which individual states pursue their own frameworks for taxing and regulating cryptocurrency activity. The dispute underscores broader questions about which level of government should set policy for the industry, and how transaction-based taxes might affect market participants and trading behavior within the state.
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