State officials in Illinois have agreed to delay the implementation of a 0.2% tax on digital assets by six months. The measure, which was originally scheduled to take effect on January 1, 2027, will now be postponed until July 1, 2027.
The decision follows a lawsuit filed in the circuit court of Sangamon County by the Digital Chamber. The organization challenged the tax, which was included in the state budget for the 2027 fiscal year, arguing it was enacted without public debate or legislative feedback.
The legal filing states that the extension will allow for the orderly briefing and adjudication of the case. Under the original legislation signed by Governor JB Pritzker in June, crypto brokers faced potential fines and prison time for non-compliance.
Cody Carbone, CEO of the Digital Chamber, described the delay as a significant development but confirmed that the organization intends to continue its legal efforts to have the tax permanently overturned.
Separate legal challenges were also initiated in August by the Crypto Council for Innovation and the Blockchain Association. These trade groups argued that the tax is unconstitutional and previously sought a preliminary injunction to block its enforcement.
