The Illinois Department of Revenue has published draft rules for the already adopted 0.2% tax on digital asset transactions, clarifying its application to stablecoins, DeFi platforms, crypto bridges, and transfers to self-custody wallets. The agency is accepting comments until October 30.

Stablecoins are taxed, NFTs are excluded

The draft specifies which assets and transactions fall under the law: stablecoins are proposed to be treated as taxable digital assets, while non-fungible tokens (NFTs) are excluded.

DeFi transactions exempt unless there is "valuable consideration"

DeFi transactions are generally not taxed if users do not pay a reward qualifying as "valuable consideration," such as protocol fees for operation or platform maintenance. Network fees and swap fees paid exclusively to liquidity providers do not trigger the tax.

Bridges and self-custody transfers taxed if a fee is charged

Transactions through crypto bridges are considered taxable exchanges when conducted through a digital asset broker for a fee. Transfers from centralized exchanges to self-custody wallets may also be taxed if the exchange charges a fee.

Law passed in June, effective January 1, 2027

The Digital Asset Tax Act was approved in June despite objections from industry groups. The tax is scheduled to take effect on January 1, 2027.