Illinois draft rules for 0.2% digital asset transaction tax would include stablecoins

Illinois’ Department of Revenue has released draft rules for the state’s enacted 0.2% tax on digital asset transactions, spelling out which crypto activities would fall inside or outside the tax base. The proposal says stablecoins would be treated as taxable digital assets, while non-fungible tokens would be excluded. The draft also draws lines around DeFi activity. DeFi transactions would generally be exempt, but fees paid by users that are deemed "valuable consideration" could still trigger the tax. That includes protocol fees used to operate or maintain a platform. By contrast, network fees and swap fees paid only to liquidity providers would not be taxed. The document says crosschain bridging conducted through a digital asset broker in exchange for consideration would count as a taxable exchange. It also says transfers from centralized exchanges to self-custody wallets could be taxed if the exchange charges a fee. The law was approved in June and is scheduled to take effect on Jan. 1, 2027. Illinois tax authorities are accepting public comments on the draft through Oct. 30, according to Cointelegraph.