Crypto Council Sues Illinois Over Planned 0.2% Transaction Tax

The Crypto Council for Innovation (CCI) has filed a lawsuit against Illinois state authorities in an effort to block the implementation of a 0.2% cryptocurrency transaction tax.

The tax, set to take effect in January 2027, would be levied based on transaction volume rather than an investor's income or profit, a structure that the CCI argues is unconstitutional and harmful to the state's growing digital asset economy.

The group asserts that the tax violates both the U.S. Constitution and the Illinois Constitution, claiming it could result in double taxation and exposing residents and brokers to potential civil and criminal penalties for non-compliance.

The CCI emphasizes that the tax could stifle innovation and drive crypto businesses out of Illinois, undermining the state's efforts to position itself as a hub for technology and finance.