Illinois backs delay to crypto tax rule after months of industry pushback

Illinois officials have joined crypto industry groups in seeking a six-month delay to the state’s controversial digital-asset tax.The agreed motion, filed Oct. 1 in Sangamon County, asks a judge to postpone the levy’s Jan. 1 start until July 1, 2027, while a constitutional challenge brought by The Digital Chamber and the Illinois Blockchain Association proceeds.Revenue Director David Harris and Attorney General Kwame Raoul joined the request even as the state continues to dispute the industry groups’ claims against the law. If granted, the injunction would temporarily spare brokers from collecting the tax and defer corresponding liabilities for covered customers.The court had not been confirmed to have entered the order as of Oct. 4.The move marks a shift in the immediate battle over a levy that crypto firms have spent months warning could raise compliance costs and push activity outside Illinois. The law remains in force, and the joint filing does not concede that it is unconstitutional or seek its repeal.Instead, both sides would preserve their legal positions while delaying collection as the lawsuit and the state’s rulemaking process continue.Illinois crypto tax burden moves bac...