Illinois officials have joined crypto industry groups in seeking a six-month delay to the state’s controversial digital-asset tax .

The agreed motion, filed Oct. 1 in Sangamon County, asks a judge to postpone the levy’s Jan. 1 start until July 1, 2027, while a constitutional challenge brought by The Digital Chamber and the Illinois Blockchain Association proceeds.

Revenue Director David Harris and Attorney General Kwame Raoul joined the request even as the state continues to dispute the industry groups’ claims against the law. If granted, the injunction would temporarily spare brokers from collecting the tax and defer corresponding liabilities for covered customers.

The court had not been confirmed to have entered the order as of Oct. 4.

The move marks a shift in the immediate battle over a levy that crypto firms have spent months warning could raise compliance costs and push activity outside Illinois. The law remains in force, and the joint filing does not concede that it is unconstitutional or seek its repeal.

Instead, both sides would preserve their legal positions while delaying collection as the lawsuit and the state’s rulemaking process continue.

Illinois enacted the Digital Asset Tax in June, imposing a 0.2% levy on the value of digital assets involved in certain covered transactions rather than on investors’ trading profits.

Draft rules from the Illinois Department of Revenue show how broadly that structure could reach. A fee-paid withdrawal from a broker to a self-custody wallet can qualify when the statutory conditions are met, while a direct transfer without a covered broker may fall outside the levy.

From an on-chain analytics and liquidity distribution perspective, developments around "Illinois backs delay to crypto tax rule after months of industry pushback" signal important shifts in network participation. Market participants observe that derivative funding metrics, exchange reserve telemetry, and smart contract protocol interactions reflect cautious accumulation alongside disciplined risk hedging across the sector.

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