Illinois releases draft rules for 0.2% digital asset transaction tax, with stablecoins included in the tax scope

The Illinois tax department has released a draft of a 0.2% digital asset transaction tax, which considers stablecoins as taxable digital assets and excludes non fungible tokens from taxation. DeFi transactions are usually exempt, but payment of protocol fees by users for operating or maintaining the platform may trigger taxation. Only network fees and exchange fees paid to liquidity providers do not trigger this tax. Cross chain bridging through digital asset brokers and payment of consideration is considered a taxable exchange activity, and fees charged by centralized exchanges when transferring funds to self custodial wallets may also be subject to taxation. The tax law was approved in June and is scheduled to take effect on January 1, 2027. The deadline for soliciting opinions on the draft is October 30. (Source: Cointelegraph)