US Crypto Industry Sues Illinois Over Proposed Digital Asset Transaction Tax

The US cryptocurrency industry is suing to block Illinois from imposing a 0.2% tax on digital-asset transactions, which would be calculated based on the value of the asset being traded rather than an investor's profit.

The Crypto Council for Innovation and the Blockchain Association filed suit against Illinois, seeking to halt enforcement of the Digital Assets Tax Act. The law is set to take effect on January 1, 2027, and would impose a tax equal to 0.2% of an asset's value on trades, transfers, and custody services conducted through crypto brokers.

The groups argue that the tax violates both the US Constitution and the Illinois Constitution, and is also vague, creating the risk of double taxation and exposing residents and brokers to potential civil and criminal penalties.