EU crypto tax advances as US groups take aim at Illinois law

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European Union lawmakers are backing digital asset tax bills, while in the United States, industry groups are actively opposing the incoming tax law. Meanwhile, the German government is seeking a 25% tax on digital asset gains, and Bulgaria passed legislation that aligns the country with EU reporting rules, just as two leading blockchain trade associations in the U.S. filed a court motion seeking to block an incoming tax law in Illinois that they argue “unfairly” targets digital assets.

Germany proposes 25% tax on crypto gains

A draft bill from Germany’s Federal Ministry of Finance, led by Vice Chancellor and Finance Minister Lars Klingbeil, would tax gains on qualifying digital asset sales at a flat rate of 25%, regardless of how long the asset was held, bringing crypto broadly in line with the tax treatment of stocks and other financial investments.

According to a draft law seen by local outlet Handelsblatt, first reported by Die Welt on Tuesday, the proposed changes would affect digital assets acquired after December 31, 2026, with Klingbeil reportedly expecting the policy to generate tax revenue of €160 million ($186 million) in 2028 and potentially up to €350 million ($407 million) by 2030.