Illinois Postpones Digital Asset Tax Following Crypto Lawsuit
The implementation of Illinois' Digital Asset Tax has been delayed by six months following a lawsuit filed by crypto advocacy organizations.
The tax, which was set to go into effect on January 1, 2027, would have required crypto brokers to impose a 0.2% tax or face potential prison time and fines.
Crypto and blockchain advocacy group Digital Chamber sued Illinois Attorney General Kwame Raoul and the Department of Revenue official David Harris in July, claiming the tax was 'slipped into the state's budget' without debate or public feedback.
The organization said that the delay will allow for 'orderly briefing and adjudication of the underlying legal questions' without prejudicing any party's rights.
Digital Chamber CEO Cody Carbone called the delay a 'major win' for the crypto industry, but emphasized that the job is not done and the organization will continue to attempt to overturn the tax in court.