Illinois draft crypto tax rules detail DeFi, stablecoin treatment
Illinois tax officials have released draft rules for the state’s 0.2% digital asset transaction tax, clarifying how it would apply to stablecoins, DeFi, and other crypto activity. Under the proposal, stablecoins would be taxable digital assets, while NFTs would be excluded. Most DeFi activity would be exempt unless users pay fees treated as “valuable consideration,” such as protocol fees used to operate or maintain a platform. Network fees and swap fees paid only to liquidity providers would not trigger the tax. Crypto bridging would count as taxable exchange activity when done through a digital asset broker for consideration. Transfers from centralized exchanges to self-custody wallets could also be taxed if the exchange charges a fee. The tax was approved in June and is set to take effect Jan. 1, 2027. Public comments are open through Oct. 30.
