Illinois Delays Controversial Crypto Tax Amid Industry Lawsuit
Illinois has agreed to delay its Digital Asset Tax from Jan. 1, 2027, to July 1, 2027, if a judge approves a stipulated request for a preliminary injunction. The request comes from a lawsuit by the Digital Chamber and the Illinois Blockchain Association against state revenue and legal officials. The delay does not end the case; the groups still argue the tax is unconstitutional and unenforceable. The law, signed by Gov. JB Pritzker in June as part of the 2027 budget, would impose a 0.2% tax on crypto purchases and transfers collected by brokers and exchanges. Critics say it is unusually broad and may apply even when users have no gains. A separate industry challenge is also pending, and federal lawmakers are considering related crypto tax changes.
