US Department of Justice and Crypto Organizations Support Overturning Illinois Digital Asset Tax

According to TechFlow, on November 13, Decrypt reported that the US Department of Justice, the US Chamber of Commerce, the Securities Industry and Financial Markets Association (SIFMA), and multiple crypto organizations submitted legal briefs supporting the lawsuit to overturn the Illinois digital asset tax.

The state tax law imposes a 0.2% tax on the full value of digital assets traded, transferred, or held in custody by customers through brokers, even if no sale or profit occurs. The Department of Justice considers the tax discriminatory; another brief joined by the DeFi Education Fund, a16z, Paradigm, and Uniswap states that the law's definitions are vague and could cover developers and decentralized protocols that do not hold customer funds.

The lawsuit was filed by the Crypto Council for Innovation and the Blockchain Association. Illinois previously agreed to suspend enforcement of the tax until July 1, 2027.

Source: TechFlow