Illinois Crypto Tax Law Faces Joint Challenge from Blockchain Association and Crypto Council

The Blockchain Association and Crypto Council for Innovation have filed a joint lawsuit against Illinois' Digital Asset Tax Act, which would impose a 0.2% tax on digital asset transactions from January 1, 2027.

The industry groups argue that the tax violates the dormant Commerce Clause, the federal Internet Tax Freedom Act, and state due process protections.

They claim that states generally cannot pass laws that place an undue burden on interstate commerce, and that a digital asset transaction tax unfairly targets internet-based financial activity.