Illinois officials have agreed to postpone the start of the state’s controversial Digital Asset Tax by six months, moving its planned effective date from January 1 to July 1, 2027. The delay still requires approval from a Sangamon County Circuit Court judge.
Court filing pauses implementation fight
The proposed delay is set out in a joint motion filed by the state and two industry groups, The Digital Chamber and the Illinois Blockchain Association. The motion asks the court to temporarily block the tax and suspend its effective date until July 1.
Because both sides agreed to the request, it is considered a stipulated motion. However, the agreement does not take effect automatically: the court must still approve it.
According to Decrypt, the filing follows a lawsuit brought against Illinois Department of Revenue Director David Harris and Attorney General Kwame Raoul. The Digital Chamber announced the agreement on X and credited its lawyers at Bellementis PLLC.
The six-month postponement is not a settlement. The two groups continue to challenge the tax’s constitutionality and whether it can be enforced. A separate legal challenge filed by the Blockchain Association and the Crypto Council for Innovation is also continuing.
What the Illinois tax would cover
Governor JB Pritzker signed the Digital Asset Tax Act in June as part of Illinois’ 2027 budget. The measure would impose a 0.2% levy on crypto activity in the state, including purchases and transfers. Digital asset brokers, including major exchanges, would be responsible for collecting it.
The breadth of the tax has become a central point of criticism. The Digital Chamber has argued that the levy could apply to users even when they have not realized a gain. The Crypto Council for Innovation has described the measure as the “most punitive digital asset tax” in the country.
Illinois lawmakers estimated that the tax could generate as much as $60 million in 2027. The industry groups’ objections focus not only on the amount but also on the way the charge could affect transactions and compliance obligations.
On September 9, the Blockchain Association and the Crypto Council for Innovation separately asked the same court to block the tax. They argued that companies were already spending millions of dollars to develop compliance systems while receiving insufficient guidance from the state.
Wider policy backdrop
The Illinois dispute comes as policymakers in Washington consider separate digital-asset tax changes. Last month, the House Ways and Means Committee advanced the Digital Asset Tax Certainty Act. Among other provisions, that bill would remove gain-or-loss calculations for qualifying network fees of $10 or less, beginning in 2028.
The federal proposal and Illinois litigation address different issues, but both reflect continuing debate over how crypto transactions should be taxed and how much reporting and compliance responsibility should fall on digital-asset businesses.
Current crypto market picture
Moneyiar market data at the stated times show mixed performance:
- Sui (SUI): $1.170261429, down 0.95% over 24 hours and up 1.05% over seven days, as of October 3, 2026, at 09:33 +03:30.
- Decimal (DEL): $0.4026865534, down 6.54% over 24 hours and 12.13% over seven days, as of 09:33 +03:30.
- REAL (ASSET): $0.2066421093, up 8.65% over 24 hours but down 11.47% over seven days, as of 09:34 +03:30.
- Ontology (ONT): $0.0606464648, up 1.02% over 24 hours and 1.35% over seven days, as of 09:33 +03:30.
