Crypto Groups Challenge Illinois Digital Asset Tax Act

The Blockchain Association and Crypto Council for Innovation have filed a joint lawsuit against Illinois' Digital Asset Tax Act, which would impose a 0.2% tax on digital asset transactions from January 1, 2027.

The industry groups argue that the tax violates the dormant Commerce Clause, the federal Internet Tax Freedom Act, and state due process protections.

They claim that states generally cannot pass laws that place an undue burden on interstate commerce, as digital asset transactions often cross state and national boundaries.