Crypto Groups Sue To Block Illinois Digital Asset Tax Act
Summary
The Blockchain Association and Crypto Council for Innovation have sued Illinois to block the Digital Asset Tax Act before it takes effect on January 1, 2027. The law would impose a 0.2% tax on digital asset transaction value. The groups argue it violates the dormant Commerce Clause, the federal Internet Tax Freedom Act, and state due process protections. The case matters because it could determine how far states can go in taxing crypto transactions directly. A ruling against Illinois could discourage similar state taxes; a ruling for Illinois could encourage them. No court has yet blocked the law, and the outcome remains uncertain.
