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Edition 2026-10-05

CRYPTO

Illinois Requests Six-Month Delay for Digital Asset Tax Implementation

A coalition of Illinois state officials and crypto industry groups has asked a Sangamon County court to postpone the state's digital asset tax for six months.

By cryptoslate · 18d ago · Source: cryptoslate

Full article

A coalition of Illinois state officials and crypto industry groups has asked a Sangamon County court to postpone the state's digital asset tax for six months. The joint motion, filed October 1, seeks to delay the tax's scheduled January 1, 2027 start until July 1, 2027, while a constitutional challenge brought by The Digital Chamber and the Illinois Blockchain Association proceeds. Revenue Director David Harris and Attorney General Kwame Raoul co-signed the request, which does not challenge the law's constitutionality but aims to temporarily suspend collection. The filing comes after months of industry opposition to the levy, which was enacted in June and imposes a 0.2% tax on the value of digital assets in specific covered transactions rather than on trading profits. Brokers would be responsible for collecting and remitting the tax under the law, with customers facing separate reporting obligations if brokers fail to collect. The proposed delay would push back these collection requirements, giving exchanges more time to develop compliance systems before implementation. Illinois' draft rules governing the tax remain under public comment through October 30, with final rules pending submission to state administrative bodies. The legal challenge and rulemaking process would continue during any granted postponement, leaving the tax's ultimate validity unresolved. Companies face two key questions before year-end: whether the court grants the delay and how the Revenue Department finalizes its rules after incorporating industry feedback.

Source transparency

Publisher
cryptoslate
Reliability
high
Published
10/5/2026, 10:00:03 AM
Retrieved
10/5/2026, 10:00:03 AM
Relevance
80%
Confidence
85%
Read original at cryptoslate

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