Illinois Digital Asset Tax Act: summary-judgment motions due in expedited challenge

Under a schedule proposed to the Sangamon County Circuit Court, opening summary-judgment motions in the challenges to the Illinois Digital Asset Tax Act would be filed on November 4, 2026. The date is tentative because the court has not yet approved the schedule, and no specific coins are named in the dispute.

What is happening

On October 13, industry groups and the State of Illinois jointly asked the Circuit Court of Sangamon County to expedite two lawsuits challenging the state's Digital Asset Tax Act. The Act would impose a 0.2% tax on the value of specified digital-asset purchases and transfers. The lawsuits allege, among other things, violations of federal and state constitutional provisions and preemption by the federal Internet Tax Freedom Act. Those allegations have not yet been adjudicated.

According to the Crypto Council for Innovation's filing announcement, the parties proposed that opening summary-judgment motions be filed on November 4, with briefing completed by January 22, 2027. They also requested a hearing in February and a decision by March 1. The proposed timetable still requires approval from the court.

Enforcement of the tax has separately been stayed until July 1, 2027. The latest development is procedural rather than a ruling on whether the tax is lawful.

Why it matters

If the court adopts the requested schedule, a merits decision could arrive before the revised effective date. That would give exchanges, brokers and other businesses with Illinois customers clarity on whether the tax can take effect, rather than leaving the question open until enforcement begins.

The stay is not an invalidation of the law. Businesses serving Illinois customers may still need to assess whether the Act would cover their transactions, who would be responsible for collecting the tax, and how their systems would calculate it if the challenges fail. Traders and holders in Illinois should note that the outcome of the case will determine whether a 0.2% charge applies to covered purchases and transfers once the stay ends. Because the November 4 date depends on court approval, it may shift.

Key details

• Date: November 4, 2026 (proposed date for opening summary-judgment motions; tentative, pending court approval)
• Project: Illinois Digital Asset Tax Act litigation
• Coins: none specified
• Category: Regulatory Deadline
• Status: Tentative
• Source: Bitcoin.com News, "This Week in Crypto Law" (October 18, 2026)