Illinois Crypto Tax Draws Unlikely Alliance of DOJ, Banks and DeFi
Summary
A broad coalition, including the U.S. Justice Department, the U.S. Chamber of Commerce, financial industry groups and major crypto firms, has filed court briefs opposing Illinois’ Digital Asset Tax Act. The law imposes a 0.2% tax on the full value of digital assets handled by brokers during trades, transfers or custody, even without a sale or gain. Opponents argue it unfairly singles out crypto, conflicts with federal policy and uses definitions broad enough to affect banks, software developers and decentralized protocols. The lawsuit seeks to overturn the law and block enforcement. Illinois has agreed to pause the tax until July 1, 2027, while the case proceeds.
