CFTC Chair Slams Illinois Crypto Tax as 'Sin Tax' for Blockchain

CFTC Chair Michael Selig has criticized Illinois' new crypto tax law, which imposes a 0.2% levy on blockchain transfers. Selig argued that this approach treats cryptocurrency transactions differently and may apply to basic asset transfers without any economic gain for users.

Selig warned that the policy may put Chicago's market future at risk and deter firms from choosing Illinois as a base for their operations. He described the law as a 'sin tax' on blockchain technology and questioned its treatment of crypto transactions, saying they face a separate burden under the law.

The comments from Selig have added federal attention to the debate over digital asset taxes in Illinois. The state's policy has raised questions about Chicago's role in financial markets and may influence where crypto companies build their services.