Illinois Crypto Groups Sue to Block Digital Asset Tax

The Blockchain Association and Crypto Council for Innovation have filed a lawsuit against Illinois to block a new 0.2% digital asset tax set to take effect on January 1, 2027.

The tax applies to specified exchanges, transfers, and storage services statewide, covering transactions and custody of digital assets.

The plaintiffs argue that the tax violates federal law by treating online digital asset activity differently from comparable transactions involving stocks, cash, or gold.

They also claim that the law is too vague, with undefined terms regarding valuation, storage, and business presence, creating uncertainty about which companies must comply.