Illinois has introduced a 0.2% tax on digital asset business activity as part of its state budget, a late-stage addition that industry sources say is unlikely to be reversed in the near term.

The tax applies to companies that exchange, transfer, or custody digital assets for customers, covering firms operating in Illinois or serving state residents with at least $100,000 in annual gross receipts. Officials expect it to raise roughly $60 million.

According to people familiar with the matter, the provision was added during final budget negotiations and signed into law by Governor J.B. Pritzker on June 16. It is included in a broader $56 billion fiscal 2027 budget that also expands taxation in areas such as fantasy sports and social media.

The crypto industry has pushed back strongly, arguing the policy unfairly singles out digital asset firms by imposing a transaction-style tax not applied to comparable financial services. Some analysts have also raised concerns that the language could extend beyond crypto to broader forms of digital financial transfers.

With the Illinois legislature out of session for the rest of the year, opportunities for changes appear limited. A fall veto session could offer a possible route for revisions, though it remains uncertain whether the governor would intervene. The tax is set to take effect on January 1, 2027.

Industry groups, including the Crypto Council for Innovation, say the measure creates an uneven regulatory playing field compared with traditional assets such as stocks and bonds and effectively targets crypto-specific activity.

Some stakeholders believe the most likely challenge could come through litigation, although no lawsuits have been filed so far.

The policy arrives against a politically sensitive backdrop in Illinois following a closely watched Senate primary in which the crypto industry spent heavily backing a candidate opposed to Governor Pritzker’s preferred choice, Lieutenant Governor Juliana Stratton, who ultimately won the race.

Crypto advocacy group Stand With Crypto, supported by Coinbase, had previously given Stratton a low rating on digital asset policy, citing her criticism of crypto-related political spending.

The new tax marks a sharp contrast with earlier blockchain-friendly legislation in Illinois and has been described by critics as one of the most aggressive digital asset tax measures in the United States.