a16z Frontier, DeFi Education Fund, and Uniswap oppose the Illinois digital asset tax bill and related rules.

PANews October 31 news: a16z Frontier, the DeFi Education Fund, and Uniswap jointly submitted a comment letter opposing the Illinois Digital Asset Tax Act. Miles Jennings, policy lead at a16z Frontier, said that the bill is one of the most anti-innovation pieces of legislation in the United States, taxing transactions merely because they take a "digital" form. The proposed rulemaking has far exceeded statutory authority and would treat many DEXs as "brokers" required to collect taxes. He pointed out that autonomous software is not a "person" capable of collecting taxes and cannot comply; this approach conflicts with the U.S. Treasury Department's classification of DEXs and with Illinois' own Digital Assets and Consumer Protection Act; the rule would even tax residents when no transaction occurs (similar to taxing a transfer from a checking account to a savings account). The comment letter calls on Illinois to stop politicized actions and comply with existing law. In addition, the Crypto Council for Innovation (CCI) and the Blockchain Association are challenging the bill through litigation.