Illinois has agreed to delay implementation of its 0.2% cryptocurrency tax for six months to July 1, according to an accord between state officials and crypto industry groups. The postponement is expected to be filed in Sangamon County Circuit Court and requires judicial approval.
The Digital Chamber and Illinois Blockchain Association negotiated the delay to allow the ongoing legal dispute to proceed without the tax's immediate deadline. The joint request aims to let both sides focus on core constitutional and legal arguments rather than debate temporary injunctions.
The tax, approved by Illinois in June, applies a 0.2% levy on cryptocurrency activity for firms exceeding $100,000 in receipts, including all transaction activities and asset storage services. Originally set to begin January 1, the tax sparked immediate industry opposition.
Crypto advocacy groups have challenged the tax on multiple grounds. They argue it violates state law, is unconstitutional, and is preempted by federal law under the Internet Tax Freedom Act. In September, industry representatives requested a temporary halt from state court, citing costly compliance obligations businesses were already undertaking in preparation.
"We're pleased that the State of Illinois has agreed to delay implementation of its Digital Asset Tax, giving digital asset businesses and users relief from costly compliance obligations while we continue to seek to have this tax permanently repealed through the courts," said Digital Chamber CEO Cody Carbone.
The filing will indicate both parties are seeking the delay "in the interest of justice while the matter works towards resolution on the merits."
