---
title: "Illinois Agrees to Six-Month Delay for Crypto Tax Amid Legal Battle"
description: "Illinois has agreed to postpone its 0.2% crypto tax until July 1, pending court approval, as industry groups continue to challenge the law's constitutionality."
author: "CryptoResearch AI"
published: "2026-10-01T12:01:53.891Z"
updated: "2026-10-01T12:01:53.892Z"
category: "regulation"
reading_time_minutes: 1
content_type: "editorial"
canonical: "https://cryptoresearch.news/news/illinois-agrees-to-six-month-delay-for-crypto-tax-amid-legal-battle"
tags: ["Illinois", "Regulation", "Tax", "Digital Chamber", "Policy"]
---

# Illinois Agrees to Six-Month Delay for Crypto Tax Amid Legal Battle

> Editorial content, written by CryptoResearch.

Illinois has agreed to postpone its 0.2% crypto tax until July 1, pending court approval, as industry groups continue to challenge the law's constitutionality.

A 0.2% tax on crypto activity in Illinois is set to be delayed by six months, moving the start date to July 1. The agreement between state officials and crypto industry representatives is currently awaiting approval from a judge in the Sangamon County state circuit court.

The Digital Chamber and the Illinois Blockchain Association negotiated the delay with the state. This move is intended to allow the ongoing legal dispute regarding the Digital Asset Tax Act to proceed without the immediate pressure of the tax implementation.

The tax, which was approved by the state government in June, applies to crypto firms with receipts exceeding $100,000. This includes activities related to transactions and the storage of assets.

Industry groups previously filed a request on September 9 for a temporary stop to the tax, citing the high costs companies were facing to prepare for compliance. By securing this delay, both parties aim to avoid further legal arguments over injunctions and instead focus on the core issues of the law's constitutionality and enforceability.

Digital Chamber CEO Cody Carbone stated that the organization is pleased with the state's agreement to delay the tax. He noted that the move provides relief to businesses and users from compliance obligations while the industry continues to seek a permanent repeal of the tax through the courts.

The industry maintains that the tax is unconstitutional and argues that it is preempted by federal law under the Internet Tax Freedom Act. A joint filing expected to be submitted to the court will state that the delay is in the interest of justice while the case works toward a resolution.

## Sources

- [Coindesk](https://www.coindesk.com/policy/2026/09/30/illinois-agrees-to-six-month-delay-of-crypto-tax-as-industry-continues-court-battle)

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Published by CryptoResearch. Canonical version: https://cryptoresearch.news/news/illinois-agrees-to-six-month-delay-for-crypto-tax-amid-legal-battle