Illinois, crypto groups seek six-month delay for 0.2% digital asset tax

  • Illinois officials and two crypto groups seek a court delay for the Digital Asset Tax.
  • 0.2% collections would move from January 1 to July 1, 2027, under the request.
  • The Sangamon County court has not approved the proposed preliminary injunction.

Illinois officials and the Chamber of Digital Commerce and Illinois Blockchain Association have asked a Sangamon County court to delay the state’s 0.2% Digital Asset Tax by six months. The proposed injunction would move the collection start from January 1 to July 1, 2027, while judges consider claims involving uniform taxation, due process, penalties, personal property taxation, interstate commerce and the Internet Tax Freedom Act. Illinois disputes the allegations but agreed that the court should review them before collections begin. The request does not settle the lawsuit, and the court has not yet approved it. Draft tax rules cover stablecoins, decentralized finance (financial services using blockchain protocols), bridges and wallet transfers, with public comments due by October 30. Separate CFTC (U.S. derivatives regulator) and SEC (U.S. securities regulator) guidance addresses tokenized assets, blockchain records, token buybacks and liquid staking.

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