Illinois Enacts the Strictest Digital-Asset Tax in the US as Industry Group Urges Veto - The Defiant
Illinois has enacted the strictest digital-asset tax law in the US, imposing new reporting and compliance requirements on crypto businesses and individuals. Industry groups are urging a veto, but the law is currently in effect.
Aforeworn detected this change in the Crypto & DeFi Tax Reporting space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. Crypto exchanges, brokers, DeFi protocols, accounting firms, and high-volume traders operating in or with Illinois residents. should confirm how it applies to their specific situation before acting. There is a time constraint attached: Immediate; the law is effective now, with first reporting deadlines likely tied to the 2024 tax year.. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Crypto & DeFi Tax Reporting continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
Illinois passed a law requiring detailed reporting of digital asset transactions, including cost basis, wash sale rules, and staking rewards, with penalties for non-compliance.
Who it affects
Crypto exchanges, brokers, DeFi protocols, accounting firms, and high-volume traders operating in or with Illinois residents.
What you must do
Review Illinois-specific tax reporting obligations, update systems to capture required data, and consult with tax professionals to ensure compliance.
Deadline
Immediate; the law is effective now, with first reporting deadlines likely tied to the 2024 tax year.
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