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Pritzker signs Illinois' first-in-the-nation crypto tax into law - State Affairs

Detected July 16, 2026 · in Crypto & DeFi Tax Reporting

Illinois enacts first-in-nation crypto tax law, imposing new reporting and withholding requirements on digital asset transactions.

Aforeworn detected this change in the Crypto & DeFi Tax Reporting space on July 16, 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, high-volume traders operating in Illinois should confirm how it applies to their specific situation before acting. There is a time constraint attached: Law effective January 1, 2025; first reports due early 2026.. 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 now requires crypto brokers to report transactions and withhold tax on digital asset sales, similar to securities. New 1099-DA-like forms and cost basis tracking mandated.

Who it affects

Crypto exchanges/brokers, DeFi protocols, accounting firms, high-volume traders operating in Illinois

What you must do

Update systems to capture Illinois-specific transaction data, implement withholding mechanisms, and prepare for state-level reporting.

Deadline

Law effective January 1, 2025; first reports due early 2026.

Source: https://news.google.com/rss/articles/CBMie0FVX3lxTE5PVXV5cmhNSXFWbUliYVB4WTY0WVR6TmwyUnBZbDlZTThGNnpQNjdzZXk0YTBSYUNkM3hxMHQyMDNMbHEyd2hyajdYNVM3bDFSLU95cHJxRXF4LXh5UVpudzEyanplR1kxQ1VDN2dvT1N0ODIxcEFTOUFwQQ?oc=5

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