Illinois Crypto Tax Faces Court Challenge Ahead of January Deadline

The Crypto Council for Innovation (CCI) and Blockchain Association have filed a motion to block Illinois' 0.2% tax on cryptocurrency transactions, set to take effect in January 2027.

The trade groups argue that the tax is unconstitutional and imposes costly compliance burdens on digital asset firms.

CCI CEO Ji Hun Kim stated that companies are being forced to divert key resources and employees to comply with a 'clearly unlawful tax,' which violates their constitutional rights.

The groups also filed a lawsuit last month, challenging the Illinois digital asset tax on grounds it violates federal and state due process laws, as well as the Internet Tax Freedom Act.