X account: Today, @a16zfrontier, @fund_defi, and @uniswap stepped into the fight against the Illinois Digital Asset Tax Act. The law is already one of the most anti-innovation bills in the country—a tax on transactions just because they're digital. Now, it's being made worse through politicized…

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Today, @a16zfrontier, @fund_defi, and @uniswap stepped into the fight against the Illinois Digital Asset Tax Act.

The law is already one of the most anti-innovation bills in the country—a tax on transactions just because they're digital.

Now, it's being made worse through politicized rulemaking that goes well beyond what the law approved—the draft rules would treat many decentralized exchanges (DEXs) as tax-collecting brokers.

That approach isn't possible to comply with: autonomous software is not a person that can collect a tax. The approach also conflicts with the U.S. Treasury Dept’s classification of DEXs and Illinois’ own Digital Assets and Consumer Protection Act.

The rules also tax Illinois resident's when there isn't even a transaction. That’s like being taxed for moving money from your checking account to your savings account.

Consumers and entrepreneurs in Illinois deserve better.

Key points

Today, @a16zfrontier, @fund_defi, and @uniswap stepped into the fight against the Illinois Digital Asset Tax Act.
The law is already one of the most anti-innovation bills in the country—a tax on transactions just because they're digital.
Now, it's being made worse through politicized rulemaking that goes well beyond what the law approved—the draft rules would treat many decentralized exchanges (DEXs) as tax-collecting brokers.
That approach isn't possible to comply with: autonomous software is not a person that can collect a tax. The approach also conflicts with the U.S. Treasury Dept’s classification of DEXs and Illinois’ own Digital Assets and Consumer Protection Act.
The rules also tax Illinois resident's when there isn't even a transaction. That’s like being taxed for moving money from your checking account to your savings account.
Consumers and entrepreneurs in Illinois deserve better.
Fortunately, @CCI and @BlockchainAssn are also challenging the Act in court and will have the entire law thrown out. Until then, we must press Illinois to stop playing politics and to follow its own laws.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

ETH: If the proposed rules do indeed include some DEX within the scope of brokers required to collect and remit taxes, this may increase compliance and legal uncertainty for DEX in Illinois, indirectly affecting applications in the Ethereum ecosystem.

Why it matters to readers

This information comes from X accounts’ statements of their positions on laws and proposed rules. No official rule text, litigation documents, or agency announcement was attached, so the specific actions taken by the relevant institutions cannot be independently confirmed.

Subject of monitoring: ETH. Observation period: during the proposed-rule and subsequent litigation period

Risks and unknowns

The full text of the proposed rules issued by Illinois, the progress of the public consultation, or the final rules
@a16zfrontier、@fund_defi、@uniswap formal statements regarding their specific actions
@CCI and @BlockchainAssn court documents and rulings concerning the litigation referred to
ETH Conditions that would reverse the assessment of the impact: Illinois amends, withdraws, or rejects the relevant rules, or a court expressly limits their scope of application.

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