The torsion of a penny-shaped crack in a transversely isotropic strip is investigated in this paper. The shear moduli are functionally graded in such a way that the mathematics is tractable. Hankel transform is used to reduce the problem to solving a Fredholm integral equation. The crack tip stress field is obtained by taking the asymptotic behavior of Bessel function into account. The effects of material property parameters and geometry criterion on the stress intensity factor are investigated. Numerical results show that increasing the shear moduli's gradient and/or increasing the shear modulus in a direction perpendicular to the crack surface can suppress crack initiation and growth, and that the stress intensity factor varies little with the increasing of the strip's height.