Illinois Crypto Tax Law Faces Block from Blockchain Associations

The Crypto Council for Innovation and Blockchain Association have filed a joint motion to block Illinois's Digital Asset Tax Act from taking effect next year. The groups argue that the law is discriminatory, unfair, and has caused irreparable harm to the digital asset industry.

The tax law imposes a 0.2% tax on crypto transactions, but critics say it doesn't exempt daily transactions or include a de minimis rule. The Digital Chamber previously sued Illinois in July, urging the court to halt the Act before it goes into effect on January 1 next year.

Crypto Council's CEO Ji Kim said that 'the harm to our industry if this takes effect would be irreparable.' The groups argue that the legislature rushed the law within hours without meaningful debate and despite concerns from legislators about its lawfulness. They also claim that the Act violates the federal Internet Tax Freedom Act by taxing internet commerce and the dormant Commerce Clause because it discriminates against interstate commerce.