Illinois Crypto Tax Faces Court Challenge Over Constitutionality

Crypto industry trade groups have filed a motion for a preliminary injunction to block Illinois' upcoming 0.2% tax on cryptocurrency transactions, arguing it's unconstitutional and would cause substantial compliance costs.

The Crypto Council for Innovation (CCI) and the Blockchain Association (BA) made the request in the Circuit Court of Sangamon County, Illinois, to halt enforcement ahead of the tax's planned start in January 2027.

According to the groups, the tax would trigger irreparable harm, including major spending on systems and resources while key details remain unclear. They argue that firms are being pressured to build systems for a tax they say violates constitutional rights, under the threat of criminal penalties.