Three crypto organizations asked Illinois to revise proposed digital-asset tax rules, saying the plan could classify some fee-collecting decentralized exchanges as brokers and reach transfers that leave ownership unchanged.
Andreessen Horowitz, identified in the filing with its a16z Frontier name, DeFi Education Fund and Uniswap Labs submitted the comments to the Illinois Department of Revenue on Oct. 30. The rules are proposed under the Digital Asset Tax Act.
The commenters say exchanges that collect protocol or trading fees could fall under the proposal’s definition of digital-asset brokers and face broker tax duties. They argue that DEXs operated by autonomous software cannot perform the intermediary tasks the draft contemplates.
The letter also points to withdrawals into a user’s own wallet and transfers between blockchains. The groups say those movements can change where assets are held without changing who owns them, yet could still be reached by the rules.
In a separate court challenge to the law, the Crypto Council for Innovation and Blockchain Association requested a decision by March 1, 2027, the Blockchain Association said. Illinois does not oppose the requested date, which remains subject to court approval.
