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.
Illinois has delayed the implementation of a 0.2% crypto tax by six months, following legal challenges and industry opposition. The Digital Asset Tax, included in the state's budget for fiscal year 2027 and signed into law by Governor JB Pritzker in June, faced criticism from crypto advocacy groups who claimed the tax was hastily added to the budget without proper debate or public input.
The coalition behind the lawsuit, Digital Chamber, reported that state officials have agreed to postpone the tax's effective date from January 1, 2027, to July 1, 2027. The lawsuit, filed in Sangamon County circuit court, states that extending the tax's implementation date will allow for a more thorough examination of legal questions without risking any party's rights, claims, or defenses.
While the Digital Chamber hailed the delay as a significant victory, the organization emphasized that the fight against the tax will continue in court. The Crypto Council for Innovation and the Blockchain Association had also filed separate legal actions in August, arguing against the tax on constitutional grounds. As of now, the status of their lawsuit remains uncertain due to the six-month delay agreement.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
