Overview
- The Illinois Department of Revenue published draft regulations between Sept. 28 and Sept. 30 and is accepting public comments through Oct. 30, with the drafts not yet filed with the Secretary of State or submitted to JCAR.
- The draft treats stablecoins as taxable digital assets and expressly excludes nonfungible tokens, while tokenized securities and commodities receive separate carve-outs.
- Decentralized finance trades are generally exempt unless a platform takes protocol fees or other 'valuable consideration,' and cross-chain bridging or exchange withdrawals become taxable when a broker charges a fee.
- Brokers must collect a 0.2% levy based on the asset's U.S. dollar value at transaction time using a spot price or regulated benchmark, and remote brokers meet Illinois nexus when covered Illinois receipts hit $100,000.
- The law faces multiple industry lawsuits and a repeal bill, and state officials and industry groups have agreed to seek a judge-approved six-month delay that could push the tax start to July 1 if the court permits it.