Illinois Tax on Digital Assets Sparks Constitutional Challenge

Crypto advocacy groups are fighting Illinois' new 0.2% tax on digital asset transactions, which is set to take effect in 2027.

The Crypto Council for Innovation (CCI) and the Blockchain Association have filed a complaint in Sangamon County Court, arguing that the tax violates the US Constitution and the Illinois Constitution.

The tax applies to companies based in Illinois or serving customers in the state with gross revenue of at least $100,000, according to CCI CEO Ji Kim.

Kim stated that the levy imposes a 'uniquely punitive burden' on digital assets, singling them out for treatment not applied to traditional financial transactions.