Illinois has agreed to delay the start of its new crypto tax by six months, giving crypto businesses more time as the industry challenges the tax in court. The tax was originally due to begin on January 1. The delay still needs approval from a state judge. The dispute involves a 0.2% tax on certain crypto activity by businesses with more than $100,000 in receipts.
Americans shouldn’t pay a penalty for choosing a different technology. So we sued Illinois over its Digital Asset Tax, and it’s now delayed until July 1, 2027. The fight isn’t over, but this is an important step toward fair rules and keeping innovation in America.
Huge thanks to @BellementisPLLC, @ILBlockchainIBA, and TDC’s @BirdnalsLAW for leading the charge.
@ZuneraMazhar
— The Digital Chamber (@DigitalChamber) October 1, 2026
The agreement was reached between the Digital Chamber, the Illinois Blockchain Association and state officials. A joint request for the delay is expected to be filed in the Sangamon County circuit court.
LATEST: ⚖️ Illinois agreed to delay its 0.2% Digital Asset Tax until July 1, 2027, in a joint motion with crypto industry groups suing the state, pending a judge’s approval. https://t.co/1l28FwC2IL
— CoinMarketCap (@CoinMarketCap) October 1, 2026
The six-month pause could give both sides more time to focus on the larger legal fight. The crypto industry is challenging the constitutionality and enforceability of the Digital Asset Tax Act rather than simply arguing over when the tax should start.
Illinois approved the tax in June. It applies to certain activities involving digital assets, including transactions and accepting crypto assets for storage. Crypto industry groups have strongly opposed the measure and say it could create significant compliance costs for businesses.
The Digital Chamber and other groups had already asked the court in September to temporarily stop the tax. They argued that companies were having to spend money and resources preparing for the new rules even while its legality was being challenged.
Let’s go. @DigitalChamber has reached an agreement with Illinois in our lawsuit against its Digital Asset Tax. The tax will NOT take effect January 1. It’s blocked until at least July 1, 2027.
Job’s not done. We’re fighting alongside our members to overturn it for good.
https://t.co/Xv4NBoIas2
— Cody Carbone (@CodyCarboneDC) October 1, 2026
Digital Chamber CEO Cody Carbone welcomed the delay. He said it would give digital-asset businesses and users some relief while the industry continues its attempt to have the tax removed permanently.
The industry has raised several legal arguments against the measure. It says the tax may not be valid under Illinois law and has also argued that it could conflict with the federal Internet Tax Freedom Act. For now, however, the tax has not been cancelled. The latest agreement only seeks to push back its implementation by six months.
The case could therefore become an important test for how individual US states treat crypto businesses. If Illinois eventually succeeds in defending the tax, other states could look at similar measures. If the industry wins, it could make states more cautious about introducing new taxes on digital-asset activity. The next step is for the state court to decide whether to approve the proposed delay.
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