Illinois state officials have agreed to delay the implementation of a controversial 0.2% tax on digital assets by six months, moving the effective date from January 1 to July 1, 2027. This decision follows lawsuits and pushback from the crypto industry, which argued that the tax was hastily passed.
The Digital Chamber, a crypto advocacy group, filed a lawsuit against Illinois Attorney General Kwame Raoul and the Department of Revenue, claiming the tax was included in the state budget without proper debate or public consultation. The court filing noted that the delay will allow for orderly legal proceedings regarding the tax.
Governor JB Pritzker signed the tax into law earlier this year, which would have required crypto brokers to impose the tax or face severe penalties. Digital Chamber CEO Cody Carbone hailed the delay as a significant victory but emphasized that their fight against the tax is not over.
In addition to the Digital Chamber's lawsuit, other legal actions are ongoing from the Crypto Council for Innovation and Blockchain Association, who are challenging the tax on constitutional grounds. The outcome of these cases remains uncertain amid the recent developments.