Is Illinois trying to 'bleed' the crypto industry dry with a 0.2% tax? The industry won't take it lying down! Eighteen crypto organizations have just filed an emergency motion, asking the court to immediately block this new digital asset tax law. They argue that the law is far too vague and impractical, targeting non-custodial developers and blockchain infrastructure.
Just think about it: how can entities that don't hold users' assets and don't know where they are possibly calculate and collect taxes? This is an unimaginable burden that could stifle innovation and drive crypto projects out of the state.
Beyond being technically absurd, the parties also argue that the law blatantly discriminates against digital assets by treating ordinary network services as taxable brokerage activities. It also faces concerns over federal jurisdiction, including the Internet Tax Freedom Act. This is a major legal battle for the entire industry.
For now, implementation of the tax has been delayed until July 2027, pending the court's ruling. The outcome will set an important precedent, shaping how other U.S. states treat crypto. A win here could stop a wave of similar taxes and protect the growth of the entire industry.
Do you think Illinois should be allowed to tax crypto this way?
#Crypto #Binance
Just think about it: how can entities that don't hold users' assets and don't know where they are possibly calculate and collect taxes? This is an unimaginable burden that could stifle innovation and drive crypto projects out of the state.
Beyond being technically absurd, the parties also argue that the law blatantly discriminates against digital assets by treating ordinary network services as taxable brokerage activities. It also faces concerns over federal jurisdiction, including the Internet Tax Freedom Act. This is a major legal battle for the entire industry.
For now, implementation of the tax has been delayed until July 2027, pending the court's ruling. The outcome will set an important precedent, shaping how other U.S. states treat crypto. A win here could stop a wave of similar taxes and protect the growth of the entire industry.
Do you think Illinois should be allowed to tax crypto this way?
#Crypto #Binance