Illinois Proposes 0.2% Crypto Tax Rate as Senator Daines Unveils Tax Reform Bill

In a significant move for the cryptocurrency landscape, the Illinois Department of Revenue has issued draft rules proposing a 0.2% tax rate on digital assets. This announcement, confirmed on September 29, 2026, reflects the growing integration of cryptocurrencies into institutional frameworks and aims to enhance compliance and market liquidity.

Industry experts note that this operational shift is crucial as it aligns with the broader trends in digital asset regulation. The proposed tax rate is part of an effort to establish a more transparent and scalable operational environment for market participants.

In parallel, Republican Senator Steve Daines has introduced the Aligning Digital Assets with Principles of Taxation Act (ADAPT Act), which seeks to update the tax code for digital assets. Released on September 30, 2026, the ADAPT Act aims to clarify tax rules for stablecoins, network fees, staking, and lending. Daines emphasized that the tax code has not kept pace with the mainstream adoption of digital assets.

The ADAPT Act proposes tax relief for everyday users of stablecoins, allowing transactions to occur without triggering capital gains or losses, provided the stablecoin meets certain criteria. Additionally, network fees under $10 would be exempt from taxation, and wash sale rules would be applied to crypto for the first time, mirroring regulations in traditional stock trading.

As these developments unfold, they signal a pivotal moment in the regulatory landscape for cryptocurrencies, with both state and federal efforts aiming to create a clearer framework for digital asset taxation.