Scott Melker, host of The Wolf Of All Streets podcast, reported on Wednesday, September 30, 2026, on X that "ILLINOIS RELEASES DRAFT RULES FOR A 0.2% CRYPTO TRANSACTION TAX STARTING IN 2027, APPLYING TO COVERED ACTIVITY REGARDLESS OF PROFIT OR LOSS". His post detailed a significant regulatory development impacting digital asset holders and traders within the state. The proposed tax, if enacted, would apply to a broad range of crypto transactions, irrespective of whether the activity generates a profit for the individual or entity.
This development emerges amidst a buoyant period for the digital asset market. Bitcoin recently cleared $84,000, with some analysts, including David Gokhshtein, believing it nears $1 million due to substantial institutional inflows. Bitcoin also saw a 10.1% increase in September, and Bitcoin ETF inflows have surpassed $999 million. The Crypto Fear & Greed Index currently registers at 71, indicating a sentiment of "Greed" among market participants.
Melker's report implies that market participants in Illinois will face new costs on a wide array of crypto activities, regardless of their trading outcomes. This 0.2% tax on covered activity, even on losses, could influence trading volumes and investment decisions within the state, potentially leading some to reconsider their operational bases. The move by Illinois signals a growing trend towards increased state-level taxation on digital assets, which could prompt other jurisdictions to consider similar revenue-generating measures.
