a16z and Crypto Firms File Brief Against Illinois’ 0.2% Digital Asset Tax
According to ChainCatcher citing The Block, DeFi Education Fund, Paradigm, Uniswap and a16z led the filing of an amicus brief supporting the crypto industry’s legal challenge to Illinois’ Digital Asset Tax Act. Aave Labs, Chainlink Labs, Figment, Phantom, Hyperliquid Policy Center, Solana Policy Institute and Stand With Crypto also signed the brief.The brief argues that the law is overly broad, imposes unfavorable tax treatment on blockchain-related transactions and fails to distinguish taxable digital-asset businesses from software and network infrastructure that enable users to transact independently. Illinois estimates that 2.64 million residents hold digital assets, the fifth-highest number among U.S. states.Signed by Gov. JB Pritzker in June 2026, the law imposes a 0.2% tax on digital-asset transactions. Its effective date was postponed from January 2027 to July 2027. The Blockchain Association, Crypto Council for Innovation and The Digital Chamber had previously sued Illinois over the law.