Michael Saylor, co-founder of Strategy, has publicly condemned Illinois’ newly enacted Digital Asset Privilege Tax Act, calling it a serious misstep. The law, signed by Governor J.B. Pritzker on June 17, introduces a 0.2% tax on digital asset transactions, including wallet-to-wallet transfers, set to take effect on January 1, 2027. State officials project the levy could generate up to $60 million annually. Saylor voiced his disapproval on X, while industry groups like the Digital Chamber and the Illinois Blockchain Association have warned that the tax could drive crypto businesses out of the state. They argue that no other U.S. state imposes such a tax on digital asset transactions, and the measure was quietly tucked into a massive budget bill rather than debated as standalone legislation. The Crypto Council for Innovation also urged Governor Pritzker to veto the bill, pointing out that the tax applies to digital asset activity itself, not to capital gains or income, and lacks exemptions for routine or small transfers. This could place a heavy burden on Illinois residents and deter innovation. Miles Jennings from a16z Crypto noted that no comparable tax exists for stocks or bonds in any U.S. state. Beyond the tax, the law imposes new compliance requirements for brokers, who must register with the state, collect the tax as a separate line item, maintain records, and file monthly reports. Out-of-state brokers with at least $100,000 in annual receipts from Illinois customers are also affected. Unresolved questions remain, such as whether moving Bitcoin from self-custody to an exchange and immediately selling it counts as one taxable event or two. The legislation has escalated tensions between Illinois and the crypto industry, especially as the state faces a lawsuit from the CFTC over prediction markets. With the tax now law, attention shifts to how brokers and users will prepare for the upcoming regulations.