Illinois Delays Digital-Asset Tax Amid Ongoing Crypto Industry Lawsuits
Illinois has delayed implementation of its digital-asset tax by six months in response to ongoing legal challenges from the crypto industry. The original effective date was set for January 1, 2027, but it will now take effect on July 1, 2027.
The Digital Chamber, a digital-asset and blockchain advocacy group, filed a lawsuit against Illinois Attorney General Kwame Raoul and David Harris, an official with the state Department of Revenue, in July. The suit argued that the tax provision was added to the budget without sufficient public debate or input.
Industry groups including the Digital Chamber, the Crypto Council for Innovation (CCI), and the Blockchain Association (BA) continue to pursue their legal challenges, citing potential unconstitutionality. While the delay is seen as a 'major victory' by Cody Carbone, CEO of the Digital Chamber, he emphasized that a delay is not a repeal and the group will continue its fight until the tax is fully invalidated.