Illinois Pauses Its Crypto Tax as Open USD Stablecoin Goes Live

Illinois Puts Its 0.2% Crypto Tax on Hold

Illinois has agreed to a six-month delay of its Digital Asset Tax Act, according to the industry groups that negotiated the deal. The law, approved in June, imposes a 0.2% tax on crypto activity, including transactions and the storage of customer assets, for firms with more than $100,000 in receipts. It was due to start on January 1, 2027. Under the agreement, the start date moves to July 1, but only if a judge approves it.

The Digital Chamber and the Illinois Blockchain Association negotiated the postponement. A joint request was expected to be filed in the Sangamon County circuit court. The delay lets both sides argue the case without a hard deadline looming. Industry groups had asked the court on September 9 for a temporary stop, citing the compliance costs companies were already carrying.

It is a delay, not a repeal. The Digital Chamber sued in July, and the Blockchain Association followed in August. The challengers argue that the tax singles out digital assets and, in some arguments, that federal law preempts it. A separate repeal bill was also filed in the state legislature.

Open USD Enters the Stablecoin Race

On Wednesday, Open Standard launched Open USD (OUSD) on Ethereum, Solana, Base and Tempo. The token is issued by Bridge, the stablecoin infrastructure company owned by Stripe. Its reserves are held at BlackRock, Lead Bank and BNY, and Bridge plans to publish attestations monthly.

Coinbase, Mastercard, Shopify, Stripe and Visa are the founding partners. Open Standard says its network includes more than 200 financial institutions, fintechs, banks and global businesses. The founders are also committing over $1 billion to seed supply.

Businesses can mint and redeem OUSD 1:1 against the dollar at no cost through BVNK, Stripe and the Visa Stablecoin Platform. Coinbase access opens on October 1. Trading starts on Coinbase, Kraken and Uniswap. Stripe says OUSD will become its default stablecoin for business payments. Executives at Coinbase, Visa and Mastercard say they will keep supporting multiple stablecoins, including USDC.

Why the Two Stories Belong Together

Illinois shows how a single state can create uncertainty for crypto firms, even as major US payment companies build stablecoin rails for everyday business use. The delay buys the industry time to make its legal case. OUSD shows that mainstream finance is committing real capital to on-chain dollars.

Market Backdrop and What to Watch

Bitcoin is trading near $84,000 after the third quarter closed up roughly 40%. The next milestones are the court's decision on the Illinois delay, OUSD's circulating supply after Coinbase access opens, and Bridge's first reserve attestation. The launch announcement did not disclose how much OUSD was initially issued.