Illinois will postpone implementation of crypto tax following lawsuit

A filing in Sangamon County circuit court on Thursday shows Illinois will delay enforcement of a 0.2% digital asset tax from Jan. 1, 2027 to July 1, 2027. The stipulation, submitted by the Digital Chamber, said the six-month postponement will allow for orderly briefing and adjudication of the legal issues the group raised without prejudicing any party’s rights. The tax was added to Illinois’ fiscal year 2027 budget bill that Governor J.B. Pritzker signed in June. Under the enacted legislation, brokers handling digital assets would have been required to collect the 0.2% levy beginning Jan. 1, 2027, and could have faced fines and potential prison terms for noncompliance. Digital Chamber sued Illinois officials in July, arguing the tax was inserted into the budget process with insufficient debate and public input. The group’s CEO, Cody Carbone, described the agreed delay as an important outcome for the industry but emphasized the organization will continue its effort to have the tax invalidated in court. Separate trade associations — the Crypto Council for Innovation and the Blockchain Association — filed their own suit in August challenging the tax on constitutional grounds and had sought a preliminary injunction to block the January start date. The filing by the Digital Chamber changes the immediate enforcement timeline, but it does not resolve the underlying legal disputes, which remain pending in state court.