Crypto Groups Challenge Illinois' 0.2% Cryptocurrency Tax

Two major crypto advocacy groups have filed a lawsuit against Illinois' new 0.2% tax on cryptocurrency transactions, arguing it violates constitutional and statutory protections.

The Crypto Council for Innovation (CCI) and the Blockchain Association (BA) claim that the tax is unconstitutionally vague, creating uncertainty for residents and businesses about which digital assets are subject to taxation.

They also argue that the tax conflicts with the federal Internet Tax Freedom Act and could lead to duplicative taxation due to cross-border activity in the digital asset economy.

The lawsuit was filed in Illinois' Circuit Court for the Seventh Judicial Circuit in Sangamon County, where enforcement of the tax is expected to begin in January 2027.