Illinois has decided to delay the start of a 0.2 percent tax on digital assets by 6 months.

On Oct. 1, Cointelegraph, a blockchain media outlet, reported that the start date will be postponed to July 1, 2027 from the originally scheduled Jan. 1, 2027.

The adjustment came amid an industry backlash and ongoing lawsuits. Crypto policy group the Digital Chamber said in a document filed on Oct. 1 with the Sangamon County Circuit Court in Illinois that state officials agreed to the delay. The Digital Chamber filed a lawsuit in July against Illinois Attorney General Kwame Raoul (콰메 라울) and David Harris (데이비드 해리스), a tax authority official.

The dispute centres on Illinois' "Digital Asset Tax". The tax was included in a Senate bill as part of the state's fiscal 2027 budget, and Governor JB Pritzker signed it into law in June. Under the bill, crypto brokers must levy a 0.2 percent tax from Jan. 1, 2027, and can face a fine or prison term if they fail to comply.

The Digital Chamber argued that the provision was introduced by being inserted into the budget without sufficient debate or public input. In court documents, both sides explained that pushing the start date back from Jan. 1 to July 1, 2027 would allow the court to fully hear and decide the key legal issues without disadvantaging the parties' rights, claims or defences.

The industry assessed the delay as a result for now. Cody Carbone (코디 카본), chief executive officer of the Digital Chamber, called it a "major victory for the crypto industry". He stressed, however, that the delay is not a repeal and that the lawsuit's goal of invalidating the tax remains unchanged.

Legal action over Illinois' tax is not limited to the Digital Chamber's lawsuit. The Crypto Innovation Council (CCI) and the Blockchain Association (BA) also filed a separate lawsuit in August. The two groups argued that the tax violates the constitution and later sought a preliminary injunction to block implementation in January 2027.

It is still unclear what impact the agreement to delay the tax by 6 months will have on those lawsuits. As of Oct. 1, the progress of the two groups' case was also not clearly confirmed.

The move does not mean Illinois' crypto tax has been finalised. It largely gives the court time to review the key issues. As a result, the focus will be whether the tax provision remains in place after the delay, or whether the system itself is overturned following a court ruling.

Illinois has agreed to delay implementation of its Digital Asset Tax from January 1 to July 1, 2027, following a lawsuit brought by The Digital Chamber and Illinois Blockchain Association. We thank @BellementisPLLC attorneys @teresagoody, @AndoniOlta, and Angela Papalaskaris for… pic.twitter.com/GrZ9ggBZHc