Illinois agrees to postpone cryptocurrency tax for six months until July 1st, pending court approval

The Illinois state government has reached an agreement with The Digital Chamber and the Illinois Blockchain Association to postpone the implementation of the 0.2% crypto tax, originally scheduled to take effect on January 1, 2027, for six months until July 1. The extension motion requires approval from a state circuit court judge. In June of this year, the state passed the Digital Asset Tax Act targeting institutions with annual revenues exceeding $100000, imposing a 0.2% tax on cryptocurrency trading and asset custody activities. If the court approves the extension, both parties will temporarily suspend the urgent injunction request and instead conduct substantive trials on the compliance, enforceability, and constitutionality of the tax law. Industry groups are seeking to permanently abolish the tax through litigation.