“Big Mistake:” Michael Saylor Slams Illinois 0.2% Tax on Bitcoin, Crypto Transactions

Strategy co-founder Michael Saylor has criticized Illinois’ crypto tax, which will take effect from next year. Other stakeholders in the industry have also reacted to the Illinois crypto tax, which comes as Congress moves to draw up a framework for taxing crypto transactions in the country.

Michael Saylor Reacts To Illinois Crypto Tax

In an X post, the Strategy co-founder described Governor Pritzker’s signing of the legislation into law as a “Big Mistake.” The Digital Asset Privilege Tax Act (DATA) imposes a 0.2% levy on crypto transactions, including transfers between wallets.

The Illinois crypto tax will take effect from January 1, 2027, and could raise up to $60 million for the state. Top crypto prediction market platforms such as Polymarket are also affected by the legislation, as the state plans to impose a 1.75% levy on sports bets placed on these platforms.

It is worth noting that this marks the latest backlash by the crypto industry against the State of Illinois. The state is already facing a lawsuit from the CFTC, which is seeking to defend its exclusive jurisdiction over prediction markets. The state had issued cease-and-desist letters to Polymarket and Kalshi in a bid to enforce its gambling laws.

Meanwhile, the Illinois crypto tax comes as Congress moves to develop a federal digital asset tax legislation. As CoinGape reported, the U.S. House Ways and Means Committee recently released seven crypto tax-related discussion drafts.

Crypto Group Urges Gov. Pritzker To Veto Law

Crypto group Crypto Council for Innovation (CCI) sent a letter to Gov. Pritzker urging him to veto the Illinois crypto tax legislation. The group expressed concern that the law could have “severe consequences” for the state’s crypto industry.

Furthermore, CCI noted that the tax law runs counter to traditional tax frameworks that focus on gains, profits, or income. The legislation also doesn’t make exceptions for everyday transactions or include a de minimis rule to prevent taxing minor crypto transactions. This is also contrary to crypto tax reforms that Congress is discussing amid the push to pass the CLARITY Act.

Meanwhile, CCI warned that the move by Illinois 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.’ On the other hand, litigator Joe Carlasare noted how the Illinois crypto tax leaves a key issue open. “If you move BTC from self-custody to Coinbase and immediately sell, is that one taxable event or two?” he questioned.

Illinois’ new digital asset tax leaves a key issue open: if you move BTC from self-custody to Coinbase and immediately sell, is that one taxable event or two?

The transfer and sale could be viewed as separate statutory activities under the text of PA 104-0464. However, it may…

— Joe Carlasare (@JoeCarlasare) June 17, 2026