Blockchain Association Challenges Illinois Digital Asset Tax Act

The Blockchain Association and Crypto Council for Innovation have taken legal action against Illinois over its Digital Asset Tax Act, claiming it exceeds constitutional authority.

The law targets digital-asset activity with a specific tax, which the groups argue discriminates against interstate commerce.

Ji Hun Kim, CEO of CCI, expressed concern that other states might follow suit, creating a fragmented system where companies have to navigate different digital-asset tax structures in each state.

The lawsuit also alleges that the law violates the federal Internet Tax Freedom Act (ITFA) and raises due process concerns due to unclear requirements.