Illinois Cryptocurrency Tax Lawsuit Filed by Leading Advocacy Groups

Two prominent crypto advocacy groups have filed a lawsuit against Illinois' new 0.2% tax on cryptocurrency transactions, which is set to take effect in January 2027.

The Crypto Council for Innovation (CCI) and the Blockchain Association (BA) argue that the tax violates multiple constitutional and statutory protections, including provisions related to due process and interstate commerce.

In their lawsuit, filed in Illinois' Circuit Court for the Seventh Judicial Circuit in Sangamon County, the groups contend that the law is unconstitutionally vague and could lead to duplicative taxation.

Crypto industry leaders argue that states have constitutional limits on imposing taxes on digital commerce, which can create uncertainty and fragment a rapidly growing national market.