Illinois Governor JB Pritzker signed legislation imposing a 0.2% tax on customers using digital asset services for exchange, transfer, or custody activities. The Crypto Council for Innovation publicly opposed the law, requesting a line-item veto before signing. The tax applies broadly to service usage rather than gains, making it a transactional cost rather than a capital event.
For Armada's crypto repo desk, the custody leg of crypto-collateralized repo involves transfer and custody of BTC, ETH, SOL, and similar assets through Fireblocks. If any counterparty or operational flow is domiciled or executed in Illinois, the 0.2% levy could apply to collateral movements, materially affecting transaction economics on smaller or higher-frequency repo facilities. Legal review of jurisdictional scope is warranted before the law takes effect.