A coalition of 18 crypto firms, including a16z and Uniswap, has filed an amicus brief challenging Illinois' proposed 0.2% tax on digital asset business activity. The industry argues the law is discriminatory and impossible to enforce, as it targets developers who lack custody of user assets or customer data. The tax, which aimed to raise $60 million, has been delayed by six months from its original January 1 start date.
Bullish
🤖 55%
A planned 0.2% Illinois tax on digital asset business activity above $100,000 in receipts has been delayed six months from its Jan. 1 start while 18 crypto firms and organizations challenge it in court as vague and discriminatory. A stalled or defeated state tax removes a potential overhang for US crypto activity, though the case is state-level and the tax was already on hold, limiting the effect on Bitcoin prices.
Catalysts
- ▲ Six-month delay of the Illinois crypto tax agreed recently, pushing implementation past the planned Jan. 1 start
- ▲ Amicus brief filed Thursday by 18 crypto firms including a16z, Uniswap, Aave Labs and Chainlink Labs opposing the tax
Risk Factors
- ▼ The tax is only postponed, not repealed; it could still take effect if the state prevails in court
- ▼ The dispute is state-level in Illinois with limited direct bearing on broader crypto markets