Illinois state officials have agreed to delay the implementation of the state's 0.2% digital asset tax by six months, according to the crypto advocacy organizations challenging the measure in court.

In a Thursday filing in the circuit court of Sangamon County, Illinois, the crypto and blockchain advocacy group Digital Chamber said Illinois would postpone the 0.2% tax on digital assets from Jan. 1 to July 1, 2027. The organization sued Illinois Attorney General Kwame Raoul and Department of Revenue official David Harris in July, claiming the tax had been "slipped into the state's budget" without debate or public feedback. The postponement gives both sides time to litigate before crypto brokers would otherwise have had to begin collecting the levy at the start of 2027.

"The Parties stipulate that continuing the Tax's effective date from January 1, 2027 until July 1,2027 will permit orderly briefing and adjudication of the underlying legal questions without prejudicing any Party's rights, claims, or defenses on the merits," the filing said. The joint motion for a consent injunction was filed in the Sangamon County circuit court. Because the motion was filed jointly, it indicates both the state and the challengers agreed to the pause while the case proceeds.

Source: Digital Chamber

The digital asset tax was included in a Senate bill as part of the Illinois state budget for fiscal year 2027, signed into law by Governor JB Pritzker in June. Under the legislation, crypto brokers would have been required to impose the 0.2% tax starting Jan. 1 or face potential prison time and fines. That structure placed the compliance burden — and the threat of criminal penalties — directly on digital asset businesses operating in the state.

Digital Chamber CEO Cody Carbone called the delay a "major win" for the crypto industry but said the organization would continue attempting to overturn the tax in court.

"[A] delay is not a repeal," said Carbone. "The job isn't done, and we won't stop until this tax is struck down for good."

For digital asset firms in Illinois, the agreement leaves the tax's fate unresolved while pushing back the date by which they would need to comply — a window the stipulation says will allow the underlying legal questions to be briefed and adjudicated.

Other lawsuits likely still pending in state court

The Digital Chamber's lawsuit was separate from legal actions taken by the Crypto Council for Innovation (CCI) and the Blockchain Association (BA) in August. The two trade associations argued against the crypto tax on constitutional grounds and later sought a preliminary injunction to block its Jan. 1 implementation. Together, the cases put two distinct lines of attack before Illinois courts: a procedural challenge over how the tax was enacted and a constitutional one over the levy itself.

As of Thursday, the status of the CCI and BA lawsuit remained unclear given the agreement for a six-month delay. Cointelegraph contacted the organizations for comment but did not receive an immediate response. Whether the trade associations' preliminary injunction request remains in play, and how the underlying legal questions are resolved before the new July 1, 2027 date, could determine whether and how the tax takes effect.