Illinois Delays Crypto Tax by Six Months Amid Industry Challenge

Illinois has agreed to delay the implementation of its new crypto tax by six months, giving the industry some breathing room while it continues to fight against the law in court. The Digital Chamber and the Illinois Blockchain Association, which are leading the challenge, have reached an agreement with state officials to pause the tax until at least July 1.

The original plan was for the tax to take effect on January 1, but the delay is not yet final as it still needs approval from a judge. The industry groups argue that the cost of preparing for the tax is too high, and they are seeking to have it scrapped altogether. They claim that the tax is invalid under state law, unconstitutional, and preempted by federal law through the Internet Tax Freedom Act.

Cody Carbone, CEO of the Digital Chamber, said in a statement, 'We're pleased that the State of Illinois has agreed to delay implementation of its Digital Asset Tax, giving digital asset businesses and users relief from costly compliance obligations while we continue to seek to have this tax permanently repealed through the courts.'