Illinois 0.2% Crypto Tax Faces Halt in Court Challenge
The Crypto Council for Innovation (CCI) and the Blockchain Association (BA) are seeking to halt Illinois' planned 0.2% tax on cryptocurrency transactions before its January 2027 start date.
The groups have filed a motion with the Circuit Court of Sangamon County, Illinois, requesting a preliminary injunction to block enforcement of the tax while their underlying lawsuit proceeds.
CJI CEO Ji Hun Kim stated that firms are being asked to invest 'millions' in new systems while the dispute over legality remains unresolved, creating irreparable harm due to resources and employees being diverted to compliance planning 'under the threat of criminal penalties.'
The trade groups argue that Illinois has not provided adequate clarity on what exactly is taxed and when, leaving companies uncertain about their obligations.