Crypto Groups Seek Faster Court Ruling on Illinois Digital Asset Tax Law

Two major crypto industry groups are asking an Illinois court to accelerate its review of the state’s Digital Asset Tax Act, proposing an expedited schedule that could deliver a ruling by March 2027.

The Proposed Timeline

The Blockchain Association and the Crypto Council for Innovation have proposed opening summary judgment motions by November 4, 2026, with completed briefs by January 22, 2027, and a February hearing. The judge must still approve the schedule.

The associations argue that Illinois’ Digital Asset Tax Act unlawfully singles out digital assets for different treatment under federal and state law.

“Illinois consumers and businesses deserve to know whether this tax is lawful before they are asked to comply with it,” said Blockchain Association CEO Summer Mersinger in a statement.

Enforcement Paused Until July 2027

Illinois has agreed to suspend the law’s effectiveness and enforcement until July 1, 2027, while the legal challenge proceeds — protecting consumers and businesses from compliance costs in the meantime.

“While pausing enforcement protects Illinois consumers and businesses from this onerous and legally flawed tax until July 1, it remains imperative that the merits are determined as soon as possible,” said Crypto Council for Innovation CEO Ji Hun Kim.

The court’s decision could set a precedent for whether states can impose special tax regimes on digital assets — an issue closely watched by the industry as other states weigh similar measures.

Source: Grafa