Illinois officials and cryptocurrency industry groups have jointly asked a judge to push back the launch of the state's new digital-asset tax. In an agreed motion filed Oct. 1 in Sangamon County, the parties seek to move the effective date from Jan. 1 to July 1, 2027. Illinois Department of Revenue Director David Harris and Attorney General Kwame Raoul joined the request. The Digital Chamber and the Illinois Blockchain Association filed the constitutional challenge to the tax, which would continue during the requested delay. As of Oct. 4, it had not been confirmed that the court had entered the order. Illinois enacted the Digital Asset Tax in June. The law imposes a 0.2% levy on the value of digital assets involved in certain covered transactions, rather than on investors' trading profits. Industry groups have warned for months that the tax could increase compliance costs and drive activity out of the state. The law remains in effect, and Illinois continues to dispute the groups' claims. The joint filing does not concede the tax is unconstitutional and does not ask the court to repeal it. Draft rules from the Department of Revenue suggest a fee-paid withdrawal from a broker to a self-custody wallet can be taxable when statutory conditions are met, while a direct transfer that does not involve a covered broker may fall outside the levy. Brokers would be required to collect and remit the tax and could remain liable if they fail to do so. Customers may need to calculate and pay any uncollected tax themselves by the 20th of the following month. Those obligations were set to begin in January despite the ongoing lawsuit. If the injunction is granted, brokers would be temporarily relieved of collection duties and covered customers' related liabilities would be deferred. A court-approved delay would also remove the near-term deadline for the first half of 2027, giving affected firms more time to build collection and reporting systems, though it would not necessarily eliminate all compliance preparation. The parties also asked to extend the state's deadline to respond to the lawsuit to Nov. 13. The Department of Revenue is taking public comments on its preliminary rules through the close of business Oct. 30. The rules have not yet been filed with the Secretary of State or sent to the Joint Committee on Administrative Rules, leaving key implementation details unresolved. Crypto firms face uncertainty heading into year-end over whether the judge will grant the delay and how the department may revise the rules after industry feedback. If the injunction is entered, companies would have an additional six months before customers begin seeing the tax applied to covered transactions, while the law's ultimate validity remains before the court.

S&P Global Ratings has introduced a new \u0022Vault Risk Assessment\u0022 framework designed to gauge risk in on-chain digital-asset lending vaults. The firm noted the sector has grown to about $10 billion in deposits.

The International Monetary Fund has approved a $138 million disbursement for El Salvador after granting a waiver related to the government's ongoing bitcoin accumulation, according to CryptoPotato. The decision follows an IMF review that took into account El Salvador's government-held bitcoin reserve, currently valued at about $666 million. By allowing the tranche to proceed, the Fund signaled that the country's bitcoin approach has not, for now, disrupted its broader financing program. Waivers are typically used to keep a borrower in good standing when specific program targets or restrictions are not fully met. In this case, the waiver tied to bitcoin activity appears to have been a key element in clearing the review and enabling the $138 million payment, which forms part of a larger financing package. El Salvador, under President Nayib Bukele, became the first country to adopt bitcoin as legal tender in 2021. The move drew sustained IMF criticism over volatility, financial stability and fiscal transparency risks. Negotiations that followed produced a lending arrangement that included limits on government bitcoin activity. The latest review suggests those frictions have not blocked continued IMF support. El Salvador has continued to build its bitcoin position gradually, presenting it as a long-term sovereign asset strategy alongside bitcoin's legal-tender status. While a reserve near $666 million remains small relative to traditional reserve assets, it carries significant symbolic weight given the country's early and high-profile embrace of bitcoin. The outcome is also being watched outside El Salvador. Other governments and sovereign funds have tracked how the IMF handles a member state that holds bitcoin directly on its balance sheet. A waiver—rather than a funding freeze or a formal finding of noncompliance—suggests the Fund may be prepared to accommodate sovereign bitcoin holdings within existing loan frameworks under current market and fiscal conditions. Market impact The IMF's action reduces near-term uncertainty around El Salvador's access to multilateral financing and lowers the risk of a disruption that could have forced abrupt changes to bitcoin holdings or fiscal policy. For crypto markets, the decision offers a reference point for how international financial institutions may adapt to state-level bitcoin ownership. It does not alter bitcoin's underlying fundamentals, but it may be viewed by investors as evidence that institutional and regulatory friction around sovereign bitcoin reserves can be managed without requiring divestment. The waiver and disbursement indicate El Salvador's bitcoin initiative can continue alongside its IMF program for this review cycle. Future reviews will test whether that flexibility holds as reserve valuations and macro conditions evolve. Frequently asked questions What did the IMF approve for El Salvador? The IMF approved a $138 million disbursement under its ongoing financing program with El Salvador after granting a waiver tied to the country's bitcoin accumulation. Why did El Salvador need a waiver related to bitcoin? El Salvador's IMF program includes conditions limiting government bitcoin activity, reflecting the Fund's long-standing concerns about volatility and fiscal risks. How large is El Salvador's current bitcoin reserve? El Salvador's government-held bitcoin reserve is valued at approximately $666 million based on accumulated holdings and current market prices. Does this mean the IMF supports bitcoin adoption? No. The waiver addresses a specific compliance issue within the loan program and is not a broader endorsement of bitcoin as legal tender. Originally reported by AltcoinGordon, written by Noah Sullivan. Republished with permission. View the original on AltcoinGordon →

The International Monetary Fund said it has completed the second and third reviews of El Salvador's $1.4 billion lending program, clearing an immediate disbursement of SDR 101.96 million, equivalent to about $138 million. The IMF's board approved waivers for missed performance criteria linked to Bitcoin accumulation after authorities took corrective steps and reaffirmed their commitments. The decision keeps funding available despite earlier breaches, without altering the program's restrictions on Bitcoin. The Fund said it does not envisage any further Bitcoin accumulation beyond documented donations. That condition blocks the government from resuming publicly funded Bitcoin purchases under the IMF arrangement. El Salvador holds about 7,794.37 Bitcoin, valued at roughly $666.1 million. The IMF noted that additions to government-linked wallets appear inconsistent with the agreement, though it has previously distinguished between Bitcoin bought with public funds and coins received via documented donations. As a result, reported reserve balances can rise without necessarily implying that President Nayib Bukele's administration has restarted purchases, while higher Bitcoin prices can lift the value of existing holdings. On the broader program, the IMF said fiscal consolidation is advancing broadly in line with objectives and that reserve and liquidity targets have been comfortably met. The 40-month Extended Fund Facility was approved in February 2025 to support fiscal adjustment, stronger reserves and financial-sector reforms. The IMF also cited progress in reducing the state's direct role in crypto. El Salvador has transferred majority ownership and control of the government-backed Chivo wallet to a private operator, but the Fund said remaining public-sector exposure to Chivo should still be fully unwound. Additional commitments remain outstanding. The IMF wants improved disclosure of public-sector crypto holdings, stronger regulation and governance for digital-asset providers, and amendments to the Digital Asset Issuance Law where needed. These requirements sit alongside the pledge to avoid further government-funded Bitcoin accumulation. The IMF said future reviews will depend in part on whether El Salvador can document changes in its Bitcoin balance while completing the remaining Chivo unwind and transparency measures. Unexplained Bitcoin accumulation could again force the government to seek waivers to access additional program financing.

Odaily Planet Daily reports that U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins said the agency will keep moving forward with oversight of cryptocurrencies and digital securities, and plans to roll out additional rules designed to ensure digital-asset markets remain in the United States. Speaking on October 2, Atkins said the SEC's proposed framework for crypto-asset custody is intended to modernize rules dating back to 1940, which were built for traditional custody and safekeeping. The comments come after the U.S. Senate failed last month to pass the CLARITY Act. Atkins added that the custody proposal is part of a broader SEC push to establish a comprehensive crypto-asset regulatory system beginning in 2025. He pointed to earlier proposals, including Regulation Crypto Assets and an Innovation Exemption, which would create a five-year sandbox allowing trading of U.S. stocks on decentralized exchanges and through liquidity providers. John Reed Stark, former head of the SEC's Internet Enforcement Office, said the effort goes beyond the SEC's authority and sidesteps Congress. Atkins said more proposals are on the way and that the SEC will continue backing President Trump's goal of making the United States the global capital of cryptocurrency. (Bitcoin.com News)

The International Monetary Fund has approved a disbursement of SDR 101.96 million (about $138 million) for El Salvador after issuing a waiver tied to a program condition on Bitcoin accumulation. The IMF Executive Board concluded the second and third reviews of El Salvador's Extended Fund Facility on October 1. The Fund said economic performance has outpaced expectations, supported by improved security conditions and stronger investor confidence. Progress has also been reported on narrowing fiscal imbalances, with reserve and liquidity buffers strengthening and the fiscal consolidation plan broadly remaining on track. The IMF noted that some program conditions were not met, including a requirement related to the government's Bitcoin accumulation. Waivers were granted on the basis of "corrective measures and renewed commitments" from the authorities. Under the updated commitments, El Salvador is not expected to accumulate additional Bitcoin beyond documented donations. The Fund added that the government is moving to reduce its role in BTC-related activities, including steps to improve transparency around public-sector crypto holdings and to strengthen the rules governing cryptoasset companies. "Efforts will continue to reduce the state's involvement in Bitcoin-related activities, strengthen crypto-asset regulation and governance, and enhance transparency regarding public-sector crypto-asset holdings. No further Bitcoin accumulation is envisaged beyond the documented donations." Separately, the IMF said the government's Chivo digital wallet is shifting toward private control. Majority ownership and control have been transferred to a private operator, while the remaining public-sector exposure is expected to be unwound over time. El Salvador agreed to a 40-month IMF program in February 2025, which provides total access of about $1.4 billion. The new disbursement is part of that broader arrangement. The IMF said further reforms are still needed to bolster public finances, rebuild external reserves and improve financial-sector resilience. It expects pension and civil service reforms to advance after earlier delays. The Fund also called for stronger governance and greater transparency, citing priorities such as public-sector reporting, beneficial ownership disclosures, asset declarations and anti-money laundering rules, which it described as important for maintaining economic stability.

Former President Donald Trump has chosen Jay Clayton, the former chair of the U.S. Securities and Exchange Commission known for initiating the SEC's lawsuit against Ripple, to lead a new push focused on artificial intelligence.

NEW: SEC Chair Paul Atkins said this week the agency is looking at \u0022new rules and amendments\u0022 for crypto assets. Atkins noted that since Bitcoin\u0027s debut in 2008, the crypto market has expanded from a niche experiment into a multitrillion-dollar asset class that investors are increasingly seeking exposure to.