According to CoinDesk, the Crypto Council for Innovation (CCI) and the Blockchain Association filed a motion for a preliminary injunction on Wednesday with an Illinois court, seeking to halt the state’s Digital Assets Tax Act before its January 1, 2027, effective date. The tax, enacted on the final day of this year’s legislative session, imposes a 0.2% rate on entities headquartered in or providing services within Illinois with annual gross revenues exceeding $100,000. Both organizations previously sued the bill last month in conjunction with The Digital Chamber, arguing that it violates federal preemption. The motion states that member companies have already suffered “severe and irreparable harm” due to the need to build compliance systems. CCI CEO Ji Hun Kim said businesses are being forced to spend millions of dollars to build systems for a tax that is unconstitutional and lacks clarity on its scope and timing; Blockchain Association CEO Summer Mersinger noted that “the state stands to lose little by waiting during litigation, while the parties stand to suffer enormous losses if proceedings continue.”
Crypto Groups Seek Court Order to Halt Illinois Digital Asset Tax
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Summary
Crypto groups are seeking to block Illinois’ Digital Asset Tax Law through a court injunction ahead of its 2027 effective date. The Crypto Innovation Council and the Blockchain Association argue that the law violates federal preemption and imposes harm on firms developing compliance systems. The 0.2% tax applies to entities with annual revenue exceeding $100,000. The groups previously filed a lawsuit in August, asserting that the law represents flawed digital asset regulation and creates legal uncertainty, particularly against the backdrop of global frameworks such as MiCA (EU Markets in Crypto-Assets Regulation).
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