Key Takeaways
- • Andreessen Horowitz, the DeFi Education Fund, Paradigm and Uniswap lead a group of crypto and venture investors that filed an amicus brief opposing Illinois's Digital Asset Tax Act, arguing it singles out blockchain transactions for unfavorable tax treatment.
- • The Act imposes a 0.2% tax on digital asset transactions and was originally slated to take effect in January 2027; under Illinois's fiscal year 2027 budget, the start date has been delayed to July 2027.
- • The brief argues the law's scope is too wide and could affect an estimated 2.64 million Illinois residents who hold digital assets.
- • The amicus filing adds to a lawsuit brought by the Blockchain Association, the Crypto Council for Innovation and The Digital Chamber, signaling widening industry opposition before the planned rollout.
Summary
The DeFi Education Fund, Paradigm, Uniswap and Andreessen Horowitz are leading a coalition that filed an amicus brief supporting the crypto industry's challenge to Illinois's Digital Asset Tax Act, according to The Block. The signatories also include Aave Labs, Aptos Labs, Aztec Labs, Chainlink Labs, Hyperliquid Policy Center, Jito Labs, Multicoin Capital Management LLC, Orca Creative, Solana Policy Institute and Stand With Crypto.
The brief contends that the law singles out blockchain-based transactions for unfavorable tax treatment and unfairly targets the digital asset sector. It also argues the act does not adequately account for the technological complexities of digital assets, and that it fails to draw clear enough boundaries between taxable digital asset business activity and the software and network infrastructure that allows users to transact independently. The filing states the scope is too wide and could affect an estimated 2.64 million Illinois residents who hold digital assets.
The amicus filing is part of a broader legal fight. The Blockchain Association, the Crypto Council for Innovation and The Digital Chamber have sued the state over the measure. Governor JB Pritzker signed the Digital Asset Tax Act into law as part of Illinois's fiscal year 2027 budget planning. The 0.2% tax was initially due to take effect in January 2027, but that timeline has since been pushed back to July 2027.
Crypto industry advocates have criticized the measure as unprecedented and are seeking to block its implementation before it takes effect. The latest filing indicates that opposition is spreading across venture capital, protocol and policy groups as Illinois moves toward the delayed launch date.
The brief contends that the law singles out blockchain-based transactions for unfavorable tax treatment and unfairly targets the digital asset sector. It also argues the act does not adequately account for the technological complexities of digital assets, and that it fails to draw clear enough boundaries between taxable digital asset business activity and the software and network infrastructure that allows users to transact independently. The filing states the scope is too wide and could affect an estimated 2.64 million Illinois residents who hold digital assets.
The amicus filing is part of a broader legal fight. The Blockchain Association, the Crypto Council for Innovation and The Digital Chamber have sued the state over the measure. Governor JB Pritzker signed the Digital Asset Tax Act into law as part of Illinois's fiscal year 2027 budget planning. The 0.2% tax was initially due to take effect in January 2027, but that timeline has since been pushed back to July 2027.
Crypto industry advocates have criticized the measure as unprecedented and are seeking to block its implementation before it takes effect. The latest filing indicates that opposition is spreading across venture capital, protocol and policy groups as Illinois moves toward the delayed launch date.
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