Crypto groups seek block on Illinois tax

• Two crypto industry groups have asked an Illinois court to block a 0.2% digital asset tax.
• The tax is due to take effect in January 2027.
• The groups argue the law unfairly treats digital assets differently from other assets.

The Blockchain Association and Crypto Council for Innovation have asked an Illinois court to block a 0.2% digital asset tax.

Illinois Governor JB Pritzker signed the Digital Asset Tax Act into law during the state’s fiscal 2027 budget process.

The tax is scheduled to begin in January 2027 and would apply to digital asset transactions.

The two groups filed a preliminary injunction request in Sangamon County Circuit Court to stop the tax before it takes effect.

The groups said the law could force members to spend millions of dollars on compliance without clear guidance, while exposing them to criminal penalties.

They also argue that the tax violates the Illinois Constitution and the federal Internet Tax Freedom Act by treating digital assets differently from other assets.

The case follows a separate lawsuit filed in August by the two groups and The Digital Chamber against Illinois over the same tax.