Illinois Digital Asset Tax Act Faces Legal Challenge

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.

This is not just a local tax dispute; it has implications for how states approach crypto taxation nationwide.