Overview
- Illinois has decided to delay the implementation of its 0.2% tax on cryptocurrency transactions until July 1, 2027, as indicated in a joint motion submitted to the Sangamon County Circuit Court.
- This postponement is a result of ongoing legal action from The Digital Chamber and the Illinois Blockchain Association, who are contesting the tax's constitutionality.
- The court's approval of the motion is still pending, and there is a separate challenge being pursued by the Blockchain Association and Crypto Council for Innovation.
The state of Illinois has granted crypto users an additional six months before the tax takes effect, pending judicial approval.
State officials have reached an agreement to move the start date of the Digital Asset Tax from January 1 to July 1, 2027, according to a joint motion filed on Thursday in Sangamon County Circuit Court. The motion requests the court to temporarily halt the tax's implementation until July.
Myriad: Predict the outcome of the midterm elections.This motion arises from a lawsuit initiated by The Digital Chamber and the Illinois Blockchain Association against David Harris, the Director of the Illinois Department of Revenue, and Attorney General Kwame Raoul.
As both parties have agreed to the motion, they are jointly requesting the judge to approve the delay, although the court's consent is necessary.
The Digital Chamber shared the news on X, acknowledging their legal team at Bellementis PLLC for their efforts. However, this delay does not resolve the ongoing legal dispute, as industry associations continue to question the tax's constitutionality and enforceability.
Illinois has agreed to delay the start of its Digital Asset Tax from January 1 to July 1, 2027, following a lawsuit from The Digital Chamber and the Illinois Blockchain Association. We appreciate the work of @BellementisPLLC attorneys @teresagoody, @AndoniOlta, and Angela Papalaskaris… pic.twitter.com/GrZ9ggBZHc
— The Digital Chamber (@DigitalChamber) October 1, 2026
In June, Governor JB Pritzker enacted the Digital Asset Tax Act as part of the state's budget for 2027. This legislation imposes a 0.2% tax on cryptocurrency transactions within the state, which will be collected by digital asset brokers including major exchanges. The Crypto Council for Innovation criticized it as the "most punitive digital asset tax" in the nation, with estimates suggesting it could generate up to $60 million in revenue in 2027.
Critics have highlighted the broad application of the tax. The Digital Chamber contends that users are taxed regardless of whether they have realized any gains.
BitcoinBTC · USD$84,202−0.35%24H7D1M1YYTDSep 24Sep 26Sep 28Sep 29Oct 1$85.3k$84.4k$83.5k$82.7k24h HighHigh$84,35524h LowLow$83,182VolVol$1.3BMarket projectionsOdds by MyriadThis weekAbove $84,000Above $84k55% chance→Buy Bitcoin with USDTPowered by Jupiter$50$100$500BuyPrice data by CoinGeckoCoinGeckoMore Bitcoin news and projections →Simultaneously, the Blockchain Association and the Crypto Council for Innovation are pursuing their own legal action. On September 9, they filed a request with the same court to block the tax, arguing that companies have already invested millions in compliance systems without adequate guidance from the state.
In Washington, the House Ways and Means Committee recently advanced the Digital Asset Tax Certainty Act. This legislation proposes to eliminate gain-or-loss calculations on qualifying network fees of $10 or less starting in 2028.