Uniswap, Andreessen Horowitz (a16z), and Paradigm backed a court challenge to Illinois’s 0.2% crypto tax. The DeFi coalition filed a brief opposing the state’s draft broker rules. The groups say the proposal would require fee-charging decentralized exchanges and their interfaces to collect the levy.
The Crypto Council for Innovation and the Blockchain Association brought the lawsuit in Sangamon County Circuit Court. The DeFi Education Fund, Aave Labs, and Chainlink Labs also signed the brief.
The U.S. Justice Department filed a statement of interest on Nov. 6, the Blockchain Association said. The department argued that the crypto tax undermines federal policy on digital assets. The U.S. Chamber of Commerce and the Securities Industry and Financial Markets Association filed a separate brief that day.
How the Draft Rules Would Affect Brokers
Miles Jennings, a16z’s policy chief, said autonomous software cannot collect the levy. An October letter flagged a draft provision requiring brokers to store customers’ private keys. The signers warned of theft risks and proposed requiring public keys.
Gov. JB Pritzker signed Illinois’ 0.2% crypto tax into law on June 16, 2026. The levy covers qualifying digital asset exchanges, transfers, and storage services, even without a sale or profit. In October, a court-approved agreement delayed its enforcement from January 1 to July 1, 2027, while legal challenges continue.
An IRS rule would have required certain DeFi platforms to report user transactions. President Donald Trump signed a congressional resolution repealing it in April 2025.
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