Crypto advocacy groups oppose Illinois digital asset tax in court
Summary
Crypto Council for Innovation and Blockchain Association sued Illinois officials over the state’s new 0.2% tax on cryptocurrency transactions, set to begin in January 2027. They argue the law, signed by Gov. JB Pritzker as part of the FY2027 budget, is unconstitutional and violates federal and state due process protections, the Commerce Clause, and the federal Internet Tax Freedom Act. The groups say the tax is vague, shifts compliance burdens onto residents and brokers, and could lead to duplicative taxation and discrimination against digital commerce. The lawsuit follows a similar challenge by the Digital Chamber, reflecting broad crypto industry opposition to the measure.
