ChainCatcher report: The Digital Asset Initiative group Crypto Council for Innovation (CCI) and the Blockchain Association (BA) have filed a lawsuit against Illinois officials opposing the state’s 0.2% cryptocurrency tax. The tax, set to take effect in January 2027, is levied based on transaction volume rather than income. The two organizations filed their complaint in the Seventh Judicial Circuit Court of Sangamon County, arguing that the tax violates the U.S. Constitution, the Illinois Constitution, federal and state due process laws, and the Internet Tax Freedom Act, and may result in double taxation. The complaint also states that the tax provisions are overly vague, placing compliance burdens on residents and brokers and exposing them to risks of civil and criminal penalties. Summer Mersinger, CEO of the Blockchain Association, said Illinois cannot implement a tax regime that discriminates against digital commerce and increases uncertainty for consumers and businesses. The Digital Chamber filed a similar lawsuit in July regarding the same tax, arguing that it discriminates against digital asset traders.
CCI and Blockchain Association Sue Illinois Officials Over 0.2% Digital Asset Tax
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Summary
The Crypto Council for Innovation (CCI) and the Blockchain Association have sued Illinois officials over the state’s 0.2% digital asset transaction tax, set to take effect in 2027. The tax is based on transaction volume rather than income, and the lawsuit contends it violates constitutional and federal laws, including the Internet Tax Freedom Act. The groups argue that the policy imposes excessive compliance burdens and risks double taxation, while also harming liquidity and crypto markets by increasing uncertainty for traders and businesses. The Digital Chamber filed a similar lawsuit in July, raising the same concerns.
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