llinois 0.2% crypto tax faces new industry lawsuit

Two U.S. crypto trade groups have sued three Illinois officials to stop a 0.2% digital asset tax from taking effect on Jan. 1, 2027. Summary The Blockchain Association and Crypto Council for Innovation want the court to block the tax before its 2027 start. The complaint alleges violations of the U.S. Constitution, the Illinois Constitution, and the federal Internet Tax Freedom Act. Brokers could face registration, collection, reporting, and recordkeeping duties backed by civil and criminal penalties. The Digital Chamber filed a separate lawsuit against the same tax in July. Illinois crypto tax faces six legal claims The 39-page complaint, filed by the Blockchain Association and Crypto Council for Innovation in Sangamon County Circuit Court, seeks declaratory and injunctive relief against the Digital Asset Tax Act. Filed against Illinois Department of Revenue Director David Harris, Attorney General Kwame Raoul, and Sangamon County State’s Attorney John Milhiser, the case challenges the officials responsible for implementing, collecting, and enforcing the tax. According to the filing, Illinois would impose the levy on the full value of a customer’s digital assets whenever a covered b...