a16z Frontier, DeFi Education Fund and Uniswap Oppose Proposed Illinois Tax Rules - www.tokenpost.com
Three major crypto organizations have joined opposition to Illinois' proposed Digital Asset Tax Act rules that could classify decentralized exchanges as tax-collecting brokers.
Miles Jennings, policy lead and general counsel at a16z Frontier, announced that his organization along with DeFi Education Fund and Uniswap have formally opposed Illinois' proposed Digital Asset Tax Act rules. The legislation could require many decentralized exchanges (DEXs) to function as tax-collecting brokers, a responsibility the groups argue is unworkable for autonomous software.
Jennings contends the proposed implementation rules exceed the authority granted by the original law. He specifically highlighted that the rules might apply to asset transfers by Illinois residents that don't involve a trade, comparing this to potentially taxing transfers between personal checking and savings accounts.
Legal challenge
Separately, the Crypto Council for Innovation and Blockchain Association are challenging the Illinois Digital Asset Tax Act through litigation. The parties involved in this legal challenge have proposed March 1, 2027, as a deadline for a ruling on the matter.
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