Illinois Crypto Tax Lawsuit: CCI and BA Challenge 0.2% Levy in Court

Two prominent crypto advocacy groups have challenged Illinois' newly enacted digital asset tax in court. The Crypto Council for Innovation (CCI) and the Blockchain Association (BA) filed a lawsuit in Sangamon County, arguing that the tax violates multiple constitutional and legal provisions.

The tax, which is set to take effect in January 2027, imposes a 0.2% levy on cryptocurrency based on transaction volume. The groups claim that this structure creates uncertainty for market participants and exposes them to 'serious civil and criminal penalties' due to the lack of clear guidance.

CCI and BA also argue that the tax implicates the U.S. Commerce Clause, which governs regulation of interstate commerce. They contend that the state tax creates a 'specter of duplicative taxation,' where crypto transactions spanning multiple jurisdictions could face overlapping tax obligations.