ChainCatcher report: On Wednesday, the Crypto Commerce Initiative (CCI) and the Blockchain Association filed a motion for a preliminary injunction in the Sangamon County Circuit Court of Illinois, requesting that the state’s digital asset transaction tax be suspended during the course of litigation. The 0.2% tax applies to entities headquartered in Illinois or providing services within the state with annual gross revenues exceeding $100,000, and was originally set to take effect on January 1, 2027. Last month, the two lobbying organizations, along with The Digital Chamber, sued Illinois, arguing that the tax violates the Internet Tax Freedom Act and the U.S. Constitution, and that Illinois’s approach to taxing digital assets differs from its treatment of other financial services. CCI CEO Ji Hun Kim stated that businesses are being forced to spend millions of dollars building compliance systems while fundamental questions—such as who is taxed and when—remain unresolved. Blockchain Association CEO Summer Mersinger warned that if this law is upheld, Illinois will not be the last state to attempt such a tax.
Crypto Lobby Groups Seek Court Order to Halt Illinois Digital Asset Tax
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Summary
Digital asset regulation has moved to the courts as the Crypto Innovation Council and the Blockchain Association filed a motion to block Illinois’ digital asset tax. The 0.2% tax, targeting firms with over $100,000 in revenue, is set to take effect in 2027. The groups argue it violates federal law and CFTC rules, creating an inconsistent regulatory environment. They contend that companies are forced to build compliance systems without clear guidance. The lawsuit warns that similar laws could spread to other states.
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