Illinois Crypto Tax Faces Constitutional Challenge from Trade Groups

Illinois' planned 0.2% tax on cryptocurrency transactions has been met with resistance from the Crypto Council for Innovation (CCI) and Blockchain Association (BA), who argue it is unconstitutional and imposes costly compliance burdens.

The two trade groups have filed a motion for a preliminary injunction in the Circuit Court of Sangamon County, Illinois to block the tax before its January 2027 effective date.

According to Ji Hun Kim, CCI CEO, companies are being forced to divert resources and employees to comply with the tax, which violates their constitutional rights.

The groups have previously filed a lawsuit challenging the tax on grounds that it violates federal and state due process laws, as well as the federal Internet Tax Freedom Act.