Illinois postpones plans to tax crypto transactions

Illinois is pressing pause on its crypto transaction tax. The state has delayed the Digital Asset Tax Act, known as DATA, by six months. That pushes its effective date from January 1, 2027, to a possible July 1, 2027. The law would tax crypto activity whether a trade makes money or loses it. That feature has made it one of the most contested pieces of state crypto policy in the country. What the tax actually does DATA imposes a 0.2% tax on digital assets used in exchanges, transfers, or storage services. The levy applies to brokers that serve Illinois customers. Some quick math shows how it works. A $10,000 transfer would carry a $20 tax. That amount is the same whether the asset doubled in value or lost half of it. Illinois projected the tax would generate approximately $60 million in annual revenue. Governor JB Pritzker signed the law on June 16, 2026. It was part of the state’s FY2027 budget, which means it arrived bundled with plenty of other fiscal business rather than as a standalone bill. The penalties are where things get serious. Brokers that fail to comply could face Class 3 felony charges. Those carry up to five years in prison and fines of $25,000. Lawsuits, negotiation...