From Startup Fortune · · 1m 20s
A16z, Paradigm and Uniswap challenge Illinois crypto tax
Crypto firms sue Illinois over 0.2% digital asset tax.
In brief
Crypto firms sue Illinois over 0.2% digital asset tax. A16z, Paradigm and Uniswap filed a court brief opposing Illinois' 0.2% digital asset tax law that could raise $60 million by 2027. Originally reported by Startup Fortune.
Crypto firms challenge Illinois tax
A16z, Paradigm, Uniswap and the DeFi Education Fund filed an amicus brief in Sangamon County Circuit Court against Illinois' Digital Asset Tax Act.
Tax law details
Illinois' Digital Asset Tax Act SB 3019 imposes a 0.2% tax on digital asset transactions for brokers.
Tax effective date
The tax law's effective date was delayed from January 1, 2027 to July 1, 2027 by a court order.
Tax impact on traders
High-frequency traders face 0.4% costs per trade, potentially eliminating profit margins.
State tax concerns
Illinois lawmakers estimate the tax could raise up to $60 million by 2027.
Other legal challenges
The US Chamber of Commerce and SIFMA filed their own amicus brief arguing the tax violates the Internet Tax Freedom Act.
Court case status
Two suits are pending in Sangamon County Circuit Court under docket numbers 2026-MR-000271 and 2026-MR-000312.
Next steps
The court will rule on constitutional challenges before the tax takes effect on July 1, 2027.
The main idea
A16z, Paradigm and Uniswap filed a court brief opposing Illinois' 0.2% digital asset tax law that could raise $60 million by 2027.
