Illinois Aims to Tax All Crypto Transactions Starting 2027

The State of Illinois has proposed draft rules to tax cryptocurrency transactions starting in 2027. According to the proposal, all crypto transactions will be subject to taxation, regardless of whether they result in a profit or loss. This move is being opposed by various industry groups, including The Digital Chamber and the Blockchain Association, who are suing over what they call 'draconian' rules.

The proposed tax regime has been linked to Senator Elizabeth Warren's backing for the governor's stance, although this claim remains unverified. Industry experts have expressed concerns that taxing every transaction could stifle growth in the crypto market and hinder innovation.