ChainCatcher report, according to The Block, on September 9, the Blockchain Association and the Crypto Council for Innovation filed a motion for a preliminary injunction in the Sangamon County Circuit Court of Illinois, seeking to halt the state’s new cryptocurrency tax before it takes effect. This summer, Illinois Governor Pritzker signed the Digital Assets Tax Act, which proposes a 0.2% tax on digital asset transactions, set to take effect on January 1, 2027. Previously, the two associations, along with The Digital Chamber, had filed a lawsuit against the state in August. In their 34-page motion, the organizations argue that the tax is unprecedented and has already caused “irreparable harm” to industry members; if enacted, it would force businesses to rush into compliance without clear guidance and expose them to the risk of criminal penalties. They further assert that the law violates the Illinois State Constitution by imposing discriminatory taxation on digital assets and contravenes the federal Internet Tax Freedom Act, which prohibits discriminatory taxes on e-commerce. The Illinois Governor’s Office has not yet responded to requests for comment.
Two Major Crypto Associations Seek Injunction to Block Illinois Digital Asset Tax
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Summary
The Blockchain Association and the Crypto Council for Innovation have filed a preliminary injunction in Illinois to block the state’s new digital asset regulation from taking effect. The law, signed by Governor Pritzker, imposes a 0.2% tax on digital asset transactions beginning in 2027. Joined by The Digital Chamber, the groups previously sued the state in August, arguing that the tax violates the Illinois Constitution and the federal Internet Tax Freedom Act, and that the policy would cause severe harm to the industry. The governor’s office has not commented. The case underscores tensions between digital asset regulation and capital gains tax frameworks.
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