Illinois will postpone implementation of crypto tax following lawsuit

State officials agreed to delay the 0.2% crypto tax for six months after lawsuits and industry pushback claimed the bill was rushed through the legislature. Crypto advocacy organizations behind a lawsuit opposing Illinois’ Digital Asset Tax reported that state officials agreed to delay implementation by six months. In a Thursday filing in the circuit court of Sangamon County, Illinois, the crypto and blockchain advocacy group Digital Chamber >said that Illinois would postpone a 0.2% tax on digital assets from Jan. 1 to July 1, 2027. The organization sued Illinois Attorney General Kwame Raoul and the Department of Revenue official David Harris in July, claiming the tax had been “slipped into the state’s budget” without debate or public feedback. “The Parties stipulate that continuing the Tax’s effective date from January 1, 2027 until July 1, 2027 will permit orderly briefing and adjudication of the underlying legal questions without prejudicing any Party’s rights, claims, or defenses on the merits,” the filing said. Source: >Digital Chamber The digital asset tax was included in a senate bill as part of the Illinois state budget for the fiscal year 2027, signed into law by Governor JB Pritzker in June. Under the legislation, crypto brokers would have been required to impose a 0.2% tax or face potential prison time and fines starting on Jan. 1. Related: Illinois draft crypto tax rules detail DeFi, stablecoin treatment Digital Chamber CEO Cody Carbone >called the delay a “major win” for the crypto industry but said that the organization would continue to attempt to overturn the tax in court. “[A] delay is not a repeal,” said Carbone. “The job isn’t done, and we won’t stop until this tax is struck down for good.” The Digital Chamber’s lawsuit was separate from legal actions taken by the Crypto Council for Innovation (CCI) and Blockchain Association (BA) in August. The two trade associations argued against the crypto tax on constitutional grounds, later

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