Two More Crypto Groups Sue Illinois Over New Digital Asset Tax

Illinois is facing another legal challenge over its recently passed crypto tax, as two additional trade associations join the fight against the law.

Latest Legal Challenge

The Crypto Council for Innovation and the Blockchain Association filed a lawsuit Friday in Sangamon County, arguing the 0.2% tax violates the US Constitution, Illinois Constitution, and the Internet Tax Freedom Act. This adds to an earlier lawsuit filed last month by the Digital Chamber. CCI leader Ji Kim said the tax unfairly targets digital assets without applying similar rules to traditional financial transactions.

Who the Tax Affects

The law applies to companies based in Illinois or serving state residents, provided their total receipts exceed $100,000. It’s expected to generate around $60 million for the state budget. Critics point out that the tax applies to every transaction regardless of whether the business or investor actually made a profit.

Industry Pushback Grows

Blockchain Association CEO Summer Mersinger said the tax creates uncertainty for businesses and risks fragmenting the broader digital asset market nationally.