illinois

According to PYMNTS, the new cryptocurrency tax in Illinois, USA, will take effect on January 1, 2027. The law firm Jones Day stated that any brokers with business exposure in Illinois should begin registration preparations as soon as possible and review existing record-keeping processes to meet the upcoming compliance requirements.

Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated on the X platform that Illinois' legislation implementing a so-called "sin tax" on blockchain technology could jeopardize Chicago's future status as a financial market center.The bill even imposes taxes on the transfer of cryptocurrency assets that have not generated any economic benefits. Mike Selig referred to it as "slowdown legislation" and stated that the bill transforms residents' property rights from "inherent rights" to "privileged rights that require permission."Mike Selig further added that, against the backdrop of blockchain technology continuously reshaping financial markets, replacing policies that promote economic growth with taxes on cryptocurrency wallets may be viewed by history as a turning point or even a signal of decline for Chicago's financial development.

According to Cryptopolitan, the prediction market platform Kalshi has filed a lawsuit in the U.S. District Court for the Northern District of Illinois, challenging the newly signed SB3019 bill in the state. The bill requires prediction market platforms to obtain state-level licenses and imposes a 0.2% tax on digital asset transactions involving Illinois customers, set to take effect on July 1. Kalshi argues that federal law grants the CFTC exclusive jurisdiction over exchange-traded derivatives, and that additional state regulatory requirements conflict with the Commodity Exchange Act.If Kalshi withdraws sports event contracts from Illinois to comply with state law, it would directly violate the CFTC's uniformity requirement; if it continues to operate without a license, it would violate state law, and implementing geographic blocking technology would be costly. This lawsuit is the latest case in the dispute over prediction market jurisdiction between the CFTC and various states, with the CFTC having sued nine states to assert federal authority.

Cryptocurrency payment company Alchemy Pay announced that it has obtained a Money Transmitter License in the state of Illinois, USA. As a key state with Chicago, a global financial center, Illinois is regarded as an important market for the development of fintech and digital assets in the United States. With this approval, the number of state-level remittance licenses held by Alchemy Pay in the U.S. has increased to 18, further strengthening its compliance operational capabilities in the core U.S. market and supporting the development of its stablecoin payment public chain, Alchemy Chain.

Illinois Governor JB Pritzker signed the Digital Asset Tax Act on Tuesday, which will impose a 0.2% tax on the transaction value of digital asset transactions or services provided to customers in Illinois. The law will take effect on January 1, 2027.The tax primarily targets crypto service providers, including exchanges, custodians, and brokers, requiring them to collect and remit the tax on behalf of their clients, similar to a sales tax. Industry organizations such as the Crypto Council for Innovation, Digital Chamber, and Illinois Blockchain Association strongly oppose the bill, stating it could become one of the most stringent digital asset tax regimes in the nation. Critics argue that the tax will impose additional costs on Illinois residents simply for using digital assets and may drive crypto businesses, developers, and innovation out of the state.

According to a statement from the Crypto Council for Innovation, Illinois Governor Pritzker has signed a digital asset tax bill, which is considered to be the most punitive digital asset tax regime in the country, imposing a disproportionate tax burden on Illinois residents using digital assets.The council strongly opposes this, warning that this move will drive innovators and developers out of the state, and has issued a formal letter of opposition.

According to Cointelegraph, the Illinois State Legislature has passed the budget for the fiscal year 2027, which includes a provision to impose a 0.2% tax on cryptocurrency transactions, to be collected by digital asset brokers. This measure, referred to as the "privilege tax," is part of the amendment to the "Digital Asset Privilege Tax Act," which includes registration requirements for any digital asset broker operating in Illinois.Starting from January 1, brokers who fail to comply with the relevant regulations may be classified as a Class 3 felony in the state, facing two to five years of imprisonment and a fine of up to $25,000. The budget has been approved by the state legislature on Monday but still requires the signature of Governor JB Pritzker to take effect. JB Pritzker has publicly stated multiple times that he plans to sign the bill as soon as possible, but as of Friday morning, he has not yet signed it. Legislators expect that the cryptocurrency tax will generate $60 million in revenue for the state.

According to a report by Reuters, the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) have filed a lawsuit against the Governor of Illinois and the Attorney General, accusing them of attempting to regulate prediction markets beyond their legal authority.The two agencies stated that the relevant regulatory measures in Illinois are invalid because the state government does not have the authority to govern federally regulated prediction markets. The lawsuit emphasizes the protection of innovative financial instruments from overreach by local governments.

According to Bitcoin Treasuries, Illinois State Senator Steve McClure has proposed Bill SB3672 - the "Local Government Digital Asset Investment Act," which aims to amend the state's Public Funds Investment Act to allow public institutions to allocate up to 5% of public funds to Bitcoin-related financial products.According to the bill's definition, eligible "digital asset stocks" must be equity in publicly listed companies, and the company must be verified by the latest audited financial statements to hold at least 25% of its total assets in Bitcoin or other digital currencies.This threshold will include companies such as Strategy, Twenty One Capital, Metaplanet, and Semler Scientific, which have a core strategy of accumulating Bitcoin. The bill also allows public funds to invest in Bitcoin ETFs and Bitcoin bonds, with additional transparency requirements.

According to market news, Illinois in the United States has proposed the "Community Bitcoin Reserve Act," which aims to establish a state-level program to store Bitcoin in multi-signature cold wallets, starting with the Altgeld Bitcoin Reserve. Bitcoin cannot be traded or sold without new legislative approval.

According to Bloomberg, LevelField Financial Inc. has announced that it has received approval from the Illinois Department of Financial and Professional Regulation to acquire Burling Bank, headquartered in Chicago, and transform it into a full-service bank offering cryptocurrency services. This transaction is still subject to approval by the Federal Reserve Board.According to CEO Gene Grant II, LevelField aims to complete the transaction by the end of the year after obtaining regulatory approval and meeting other closing conditions. According to the application documents submitted to the Federal Reserve, LevelField has agreed to spend up to $70 million to acquire the bank. This marks the second attempt by both parties to merge.As early as the beginning of 2023, just before the collapse of Silvergate and Signature Bank, LevelField attempted to acquire Burling Bank. A year later, they withdrew their acquisition proposal, but after Donald Trump's election as President of the United States in December 2024, they made another attempt to acquire it.The merged entity will retain Burling Bank's primary community banking operations, with a new focus on providing deposit accounts, loans, and custody services tailored for digital assets, such as secured term loans and credit cards backed by Bitcoin or Ethereum.

ChainCatcher news, according to Cointelegraph, Illinois Governor JB Pritzker has signed the Digital Asset and Consumer Protection Act (SB 1797) and the Digital Asset Self-Service Terminal Act (SB 2319).The former authorizes the state’s Department of Financial and Professional Regulation to oversee digital asset exchanges and related businesses, requiring them to maintain sufficient financial resources and implement cybersecurity measures; the latter addresses cryptocurrency ATMs, stipulating that operators must register, provide full refunds to scam victims, limit transaction fees to no more than 18%, and restrict new users to a daily transaction limit of $2,500.

ChainCatcher news, according to CoinTelegraph, the sustainable development platform Projective Finance has launched a $7 million lending pool on the Avalanche blockchain to fund solar projects for public schools in Illinois. The platform tokenizes municipal loans through blockchain technology, enabling decentralized finance (DeFi) investors to directly participate in government-backed renewable energy infrastructure projects.

ChainCatcher news, a group of Coinbase users from Illinois has filed a class-action lawsuit against the cryptocurrency exchange, accusing it of violating the state's Biometric Information Privacy Act (BIPA) with its identity checks.Plaintiffs Scott Bernstein, Gina Greeder, and James Lonergan claim in a complaint submitted to federal court on May 13 that Coinbase "massively collects" facial recognition information to meet its "Know Your Customer" (KYC) requirements, violating BIPA as users were not notified.The group claims that Coinbase did not provide written notice to users regarding the collection, storage, or sharing of their biometric data, as well as the purpose of data use and retention schedule."Coinbase has not publicly provided a retention schedule or guidelines for the permanent destruction of the plaintiffs' biometric identifiers, which violates BIPA," they allege.The complaint states that Coinbase requires users to verify their identity by uploading government-issued photo IDs and selfies, which are then sent to third-party facial recognition software for scanning and extraction of facial geometric data. This process captures biometric identifiers without obtaining informed written consent from users, the lawsuit claims, which violates BIPA.

ChainCatcher news, according to CoinDesk, Illinois plans to withdraw its staking-related lawsuit against Coinbase, becoming the fourth U.S. state to do so after Kentucky, Vermont, and South Carolina.Currently, Alabama, California, Maryland, New Jersey, Washington, and Wisconsin continue to pursue staking-related lawsuits against Coinbase. Among them, representatives from New Jersey and Washington confirmed that the cases are still ongoing, while California, Maryland, and Wisconsin declined to comment. Alabama has not yet responded to media requests for comment.Previous news, Kentucky withdrew its staking lawsuit against Coinbase.

ChainCatcher news, according to Cointelegraph, Illinois has become the latest state in the U.S. to advance a Bitcoin strategic reserve bill. The HB1844 bill, proposed by state representative John Cabello, suggests the creation of a "Bitcoin Strategic Reserve Fund" as a special fund of the state treasury for holding Bitcoin as a financial asset.According to the bill, the state treasury must hold Bitcoin for at least 5 years, after which it may choose to transfer, sell, or convert it into other cryptocurrencies. The bill was submitted to the rules committee on January 29, awaiting further regulatory details and legislative approval. Notably, Illinois's move follows the Arizona Senate's advancement of Bitcoin reserve legislation, which seeks to allow public funds and pensions to invest in Bitcoin.MANSA co-founder and CEO Mouloukou Sanoh stated that this move is an important step for the adoption of Bitcoin in the U.S. and may encourage more states to follow suit, but nationwide approval will still require time and regulatory clarity. Additionally, Texas has also included Bitcoin reserves in its legislative priorities for 2025.

ChainCatcher news, Fox Business reporter Eleanor Terrett stated on social media that the chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, indicated that the Illinois court confirmed that BTC and ETH are digital commodities as defined by the Commodity Exchange Act.

ChainCatcher news, Mask Network announced that it has donated 33,000 MASK (approximately $140,000) to the Blockchain Initiative Fund at the University of Illinois Gies College of Business. Mask Network stated that this donation aims to help develop blockchain education at the University of Illinois, allowing more students to engage in the blockchain and Web3 world. (source link)