Illinois is the first state in the nation to impose a controversial transaction-based tax on digital asset activity, inserting the Digital Asset Tax Act, or the “cryptocurrency tax,” into the sweeping fiscal year 2027 budget bill with little public notice or industry input. Effective in 2027, the cryptocurrency tax imposes a 0.2% levy on the value of digital assets involved in each covered transaction — a novel and controversial approach that departs sharply from how states have historically treated financial activity. On June 22, 2026, however, the Illinois General Assembly introduced House Bill 5798 which, if enacted, would repeal the Digital Asset Tax Act in its entirety, effective immediately — highlighting the level of concern and uncertainty surrounding the new regime.
For a detailed analysis of the cryptocurrency tax, please see the article we published in Bloomberg Tax.
Author
David Zaslowsky
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David Zaslowsky is partner in the Litigation Department of Baker McKenzie's New York office. He helps companies solve complex commercial disputes in arbitration and litigation, especially those involving cross-border issues and Section 1782 discovery. David has a degree in computer science and, as a result, has worked on numerous technology-related disputes, including, most recently, those involving blockchain and artificial intelligence. In April 2025, Attorney Intel named David one of the top 25 blockchain lawyers in the country. He is the editor of the Firm's blockchain blog and co-editor of the firm's International Litigation & Arbitration Newsletter. David has been included for a number of years in the Chambers USA Guide and Chambers Global Guide for his expertise in international arbitration. He also sits as an arbitrator and is on the roster of arbitrators for a number of arbitral institutions. David sits on the Board and chairs the governance committee of the New York International Arbitration Center, and is a founding member of the International Arbitration Club of New York. For over 35 years, he has written and spoken often on the subjects of arbitration and international litigation.
Author
Douglas (Doug) Wick
Douglas (Doug) Wick is a partner in Baker McKenzie’s Chicago office and a member of the Firm’s Americas and Global Tax Practice Groups. Doug has more than 14 years of experience serving clients on all aspects of tax matters from controversy, litigation, advice, planning, and qui tam/False Claims Act matters.
Previously, Doug was a senior attorney with the IRS Office of Chief Counsel in Chicago, leading complex, high-value cases in US Tax Court. Prior to that, he focused on state and local tax controversy and litigation, with experience at international law firms and a “Big 4” public accounting firm.
