Illinois Crypto Tax Draws Unlikely Alliance of DOJ, Banks and DeFi

Illinois faces a lawsuit over its 0.2% tax on digital asset transactions, with an unusual coalition filing briefs in support of striking it down. The DOJ, the U.S. Chamber of Commerce, SIFMA, and a crypto coalition led by a16z, Paradigm and Uniswap all back the challenge. A state-level transaction levy on digital assets would raise trading costs and set a precedent other states could copy, so traders are watching whether the tax survives.