Illinois releases draft 0.2% crypto transaction tax rules, covering stablecoins, DeFi, and cross chain

Illinois tax officials have released a draft rule clarifying that the 0.2% digital asset transaction tax applies to stablecoins, DeFi platforms, cross chain bridges, and self custodial wallet transfers. The draft stipulates that stablecoins are considered taxable digital assets and NFTs are excluded; DeFi transactions are exempt unless users pay fees deemed valuable consideration; Cross chain bridging and centralized platform transfer of exchange fees through brokers to self managed wallets may also be subject to taxation. The tax law was passed in June and is expected to come into effect on January 1, 2027. The deadline for soliciting opinions is October 30. (Source: Cointelegraph)