Illinois Crypto Tax Challenged by Industry Groups

The U.S. cryptocurrency industry is challenging Illinois' 0.2 percent tax on crypto transactions, set to take effect in January 2027.

Crypto Council for Innovation (CCI) and the Blockchain Association have filed a lawsuit against the state government, arguing that the law is unconstitutional.

The tax, which would be levied on the value of the asset involved in the transaction, not investment gains, has sparked concerns among industry operators who claim it could prompt companies and users to move to other states or assets.