Crypto Advocates Sue Illinois Over Proposed Cryptocurrency Tax

The Crypto Council for Innovation (CCI) and Blockchain Association (BA) have filed a lawsuit against Illinois officials regarding the state's proposed 0.2% tax on cryptocurrency, set to take effect in January 2027.

The crypto advocacy groups argue that the tax violates several constitutional and federal laws, including the US Constitution's Commerce Clause, which prohibits states from imposing taxes that discriminate against interstate commerce.

In a lawsuit filed in the Circuit Court of the Seventh Judicial Circuit for Sangamon County, CCI and BA claim that the tax is 'unconstitutionally vague' and places an undue burden on residents and brokers to determine what and how digital assets are taxed.

The groups also argue that the tax creates uncertainty for consumers and businesses, threatening to fragment a rapidly growing national market.