US Justice Department, business groups and DeFi firms challenge Illinois crypto tax
The US Justice Department, business groups and a coalition of crypto and DeFi firms have backed lawsuits challenging Illinois’ 0.2% digital asset tax. Enacted in June, the levy applies to the value of assets exchanged, transferred or stored, even without a profit or change in ownership. Challengers argue it could burden customers and financial firms with costly compliance, discriminate against digital assets and conflict with federal and constitutional protections. DeFi firms also warn that rules could make developers responsible for collecting taxes despite lacking access to customer information or control over funds. The tax’s start date was delayed from January to July 2027 as legal challenges proceed; Illinois projected $60 million in fiscal 2027 revenue.
