Illinois Postpones Digital Asset Tax Amid Industry Backlash
Illinois' digital asset tax has hit a roadblock as state officials agreed to postpone its implementation by six months following a lawsuit filed by crypto advocacy organizations.
The Digital Chamber, which led the lawsuit against Illinois Attorney General Kwame Raoul and Department of Revenue official David Harris, claimed that the 0.2% tax was 'slipped into the state's budget' without debate or public feedback.
The digital asset tax, included in a senate bill as part of the Illinois state budget for the fiscal year 2027, would have required crypto brokers to impose a 0.2% tax starting on January 1, with potential prison time and fines for non-compliance.
Digital Chamber CEO Cody Carbone called the delay 'a major win' for the crypto industry but emphasized that the organization will continue to fight against the tax in court.