Illinois Crypto Tax Law Sparks Industry Lawsuit Over Transaction Fees

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

The law is set to take effect on January 1, 2027, but the industry groups argue that it violates the dormant Commerce Clause, the federal Internet Tax Freedom Act, and state due process protections.

This case has broader implications, as other states may follow Illinois' lead if the law stands. On the other hand, a successful challenge could limit how far state-level crypto taxation can go.