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CFTC Chair Selig Criticizes New Illinois Tax on Crypto Transfers

"States that provide clear and predictable regulatory environments will naturally attract more business and investment. Those that punish innovation with taxes and draconian restrictions will drive innovation elsewhere."
Michael Selig, CFTC Chair
"States that provide clear and predictable regulatory environments will naturally attract more business and investment. Those that punish innovation with taxes and draconian restrictions will drive innovation elsewhere."
Michael Selig, CFTC Chair

CFTC Chair Michael Selig criticized a new Illinois law that taxes crypto asset transfers, arguing that the tax punishes technology and threatens the state's standing as a financial hub.

In a Washington Times op-ed, Mr. Selig said the law imposes a 0.2 percent tax on a broad range of crypto asset transfers by Illinois residents. The tax is based on the value of the asset even when the transfer produces no gain. Mr. Selig noted that the law treats economically identical transactions differently based on the technology used, so moving the same value in a non-crypto form would not be taxed.

Mr. Selig said no similar financial-transaction tax exists elsewhere in the country, noting that firms decide where to build, hire, and invest, and that states punishing innovation will drive it away.

Primary Sources

  1. CFTC: Public Statements and Remarks: Washington Times Op-Ed | Chicago’s Last Trade

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Tags

Individuals
Michael Selig
Regulated Products
Digital Assets
Body of Law
CEA Regulation Tax
Jurisdiction
US - Federal , States
Organization
CFTC, NFA, CFTC Markets