Illinois agrees to six-month delay of crypto tax as industry continues court battle
The State of Illinois has agreed to a six-month delay of its 0.2% digital asset tax following legal pressure from crypto advocacy groups. This pause allows both parties to focus on litigating the constitutionality and enforceability of the tax in court.
Why it matters
This case represents a significant legal battle over state-level taxation of digital assets and whether such taxes are preempted by federal law.
The Digital Chamber and Illinois Blockchain Association reached that accord with state officials, the Chamber told CoinDesk, and it could take some of the pressure off the looming tax as crypto interests continue trying to kill the idea. In June, Illinois' government had approved the 0.2% tax on crypto activity involving firms who exceed $100,000 in receipts — including all transaction activities and accepting assets for storage.
The joint request for a delay is expected to be filed Thursday morning in the state circuit court in Sangamon County. If approved, the sides can skip haggling over legal injunctions and focus on the next stage in the court dispute, the "disputed issues of law regarding the constitutionality and enforceability" of the state's Digital Asset Tax Act.
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