Illinois has opened a new front in state-level crypto regulation after Governor J.B. Pritzker signed a budget package containing the Digital Asset Tax Act, a measure industry groups are already attacking as one of the harshest crypto transaction taxes in the United States.

TL;DR

• The law introduces a 0.2% privilege tax on digital asset broker transactions.
• The effective date cited in the source packet is January 1, 2027.
• “Most punitive” should be attributed as industry criticism, not stated as neutral fact.

Digital Asset Tax Act…

— Crypto Council for Innovation (@crypto_council) June 17, 2026

What The Illinois Tax Does

The verified source packet says the Digital Asset Tax Act is part of Illinois’ $55.9 billion state budget package. The measure introduces a 0.2% privilege tax on digital asset broker transactions, with an effective date of January 1, 2027.

The law applies to digital asset brokers where either the customer or broker is located in Illinois, with a $100,000 receipts threshold for out-of-state brokers. That means the reach of the tax may extend beyond firms physically based in the state, depending on customer location and transaction activity.

Why The Industry Is Pushing Back

The Crypto Council for Innovation and other industry voices have criticized the measure sharply. The “most punitive” label should be treated as advocacy language rather than an objective legal classification, but the pushback itself is newsworthy because it shows how quickly state-level policy can become a national industry concern.

Crypto firms are likely to argue that transaction-based taxes raise costs, reduce competitiveness and create compliance complexity. If other states copy the model, brokers could face a patchwork of state-specific digital asset rules layered on top of federal obligations.

A State-Level Regulation Test Case

The Illinois measure also highlights how crypto policy is no longer only a federal issue. Even as Congress debates stablecoins, market structure and CBDCs, individual states are experimenting with tax and licensing approaches that can directly affect exchanges, brokers and users.

That creates strategic pressure for crypto companies. They must track not only SEC, CFTC and federal legislation, but also state budgets, tax packages and consumer-protection laws that may include digital asset provisions.

What Comes Next

The next question is whether the industry challenges the tax, seeks amendments before the effective date, or pushes for federal preemption in future market-structure legislation. Firms serving Illinois customers may also need to evaluate how the receipts threshold and broker-location provisions apply to their operations.

For now, Illinois has given the market a concrete example of how states may look to tax digital asset activity directly. Whether it remains an isolated case or becomes a template will matter far beyond Illinois.

This report is based on information from Crypto Council X post

This article was written by the News Desk and edited by Samuel Rae.

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A Bank of America strategist is sounding the alarm about the stock market, warning that equities are flashing signals that have often foreshadowed a 20% correction.

In an investor note, BofA’s head of US equity and quantitative strategy, Savita Subramanian, urges investors to “take profits,” warning that she’s seeing “too many red flags” in the market, reports Axios.

“Our bear market signposts — the triggers that typically precede an S&P 500 peak — suggest additional caution may be warranted. Today, 70% of our signposts are triggered, in line with the average observed in prior market peaks.”

Subramanian says the signposts are market condition gauges, including the investor assumption that companies will continue to generate profits at a strong pace in the coming years, as well as relaxed credit conditions. She also highlights that she’s seeing very high dispersion in the performance of stocks with high and low price-to-equity ratios, meaning high-valuation stocks are being rewarded, while low-valuation stocks are being left behind.

“Dispersion has been most pronounced within Tech, where the spread between the best/worst-performing quintiles’ median stock is a whopping +120 [percentage points], the highest since Feb. 2000, which reached +130 [percentage points] ahead of the market peak of March 24, 2000.”

Meanwhile, Morgan Stanley CIO Mike Wilson says he doesn’t believe that the stock market will enter bear territory. He says, “In our view, a correction was inevitable and ultimately healthy if this bull market is going to extend into year-end, which remains our baseline.”

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