Illinois Crypto Tax Faces Preliminary Injunction as Industry Groups Escalate Fight
The crypto industry is escalating its fight against Illinois' new tax law, which imposes a 0.2% tax on digital asset transactions. The Blockchain Association and the Crypto Council for Innovation have filed a motion for a preliminary injunction in Circuit Court to block the tax before it takes effect in January 2027.
The Digital Asset Tax Act was signed into law by Illinois Gov. JB Pritzker as part of the state's fiscal year 2027 budget planning. The industry groups claim that the new tax would be unprecedented and cause 'irreparable harm' to their members, who will have to spend millions to comply with the law without meaningful guidance.
The groups argue that the tax violates the Illinois Constitution by treating digital assets differently than other assets, and also violates the Internet Tax Freedom Act. They claim that this would put the digital-asset industry at risk of 'irreparable harm' if the Act takes effect.