# A16z, Paradigm and Uniswap challenge Illinois crypto tax

> Crypto firms sue Illinois over 0.2% digital asset tax.
- Title: A16z, Paradigm and Uniswap challenge Illinois crypto tax
- Summary: 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…
- Keywords: illinois, digital asset tax act, sb 3019, a16z, paradigm, uniswap, crypto tax, 0.2% tax, sangamon county circuit court, illinois blockchain association, digital chamber, crypto council for innovation
- Source: Startup Fortune — https://startupfortune.com/a16z-paradigm-and-uniswap-back-the-suit-against-illinois-02-crypto-tax
- Published: 2026-11-14T16:10:17+00:00
- Read time: 1 min
- Topics: illinois, digital asset tax act, sb 3019, a16z, paradigm, uniswap, crypto tax, 0.2% tax, sangamon county circuit court, illinois blockchain association, digital chamber, crypto council for innovation
## 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.
## Key takeaway

A16z, Paradigm and Uniswap filed a court brief opposing Illinois' 0.2% digital asset tax law that could raise $60 million by 2027.