Illinois Crypto Tax Suspension Requested Amid Ongoing Legal Challenge

Crypto lobbying organizations have requested a court to suspend an Illinois tax as their legal case against it continues. The organizations, which include trade groups and advocacy groups, argue that the tax is unconstitutional and would harm the cryptocurrency industry.

The tax in question is a transfer tax on digital assets, which was enacted by the state of Illinois last year. The organizations claim that this tax is an unfair burden on cryptocurrency holders and traders, who are subject to it even if they do not have any connection to the state.

A court hearing has been scheduled for later this month, where a judge will consider the request to suspend the tax while the case against it continues. If granted, this could provide relief to cryptocurrency holders and traders in Illinois until a final decision is made on the constitutionality of the tax.