Illinois Delays Crypto Tax to 2027 as Open USD Stablecoin Goes Live

Illinois Pushes Back Its Digital Asset Tax

State officials have agreed to move the start of the Digital Asset Tax from January 1 to July 1, 2027. The delay was requested in a joint motion filed Thursday in Sangamon County Circuit Court. It came out of a lawsuit brought by The Digital Chamber and the Illinois Blockchain Association, and the court still has to approve it.

Governor JB Pritzker signed the law in June as part of the state's 2027 budget. It sets a 0.2% levy on crypto activity in Illinois, including purchases and transfers, and the tax is collected by digital asset brokers such as major exchanges. Industry groups argue that it is overly broad and could hit users regardless of whether they realize any gain.

Why the Delay Matters for Exchanges and Users

The postponement does not end the dispute. The plaintiffs are still challenging whether the tax is constitutional and enforceable, and a separate lawsuit by the Blockchain Association and the Crypto Council for Innovation is moving forward in parallel. Companies had warned that they faced a compressed timeline to build compliance systems without clear answers on what exactly is taxable. Six extra months gives exchanges and brokers breathing room. It also gives other states time to see how the case ends before copying the model.

Open USD Enters a Crowded Stablecoin Market

On the payments side, Open Standard launched Open USD (OUSD) on September 30 across four networks: Ethereum, Solana, Base and Tempo. The token is issued by Bridge, a Stripe company, with reserves held at BlackRock, Lead Bank and BNY, and monthly reserve attestations are planned. Coinbase, Mastercard, Shopify, Stripe and Visa are the founding partners, and together they committed more than $1 billion in launch liquidity.

How Businesses Can Access OUSD

Businesses can mint and redeem OUSD at a 1:1 rate against the US dollar at no cost through BVNK, Stripe and the Visa Stablecoin Platform. Coinbase access begins on October 1. The token also trades on Coinbase, Kraken and Uniswap. Stripe has said OUSD will become its default stablecoin for businesses, and companies can hold balances in Stripe Treasury and send funds to wallets in more than 100 countries. Instead of earning money on conversion fees, Open Standard charges a small transaction fee.

Market Context

Bitcoin opened October near $83,500, inside the $82,000 to $85,000 range it has held for weeks, while Ethereum traded around $2,700. Traders are also watching the US jobs report due Friday and elevated Treasury yields.

What to Watch Next

Two questions will shape the next few months. First, whether the Illinois court approves the delay and how the constitutional challenge develops. Second, how much OUSD supply actually circulates across its four chains, since Open Standard has not said how supply will be distributed. Early adoption numbers will be the first real test of whether another stablecoin can win market share from established players.