Insights

Illinois’ new Digital Asset Privilege Tax Act would tax crypto transactions at 0.2% of asset value starting 2027, raising compliance, valuation, sourcing, and rulemaking challenges while leaving room for changes.

The United States Tax Court issued its opinion in Paschall v. Commissioner, T.C. Memo. 2026-46, holding that cryptocurrency staking rewards are includible in gross income in the year the taxpayer receives them — not deferred until the rewards are later sold or exchanged.

The U.S. digital asset landscape is evolving quickly, with regulators revisiting prior policies, introducing new guidance, and emphasizing greater clarity. These developments may reshape compliance, market participation, and the future direction of crypto regulation.