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Crypto trade groups seek court order to block Illinois digital asset tax
The Blockchain Association and the Crypto Council for Innovation filed for a preliminary injunction in Illinois to halt enforcement of a 0.2% transaction tax scheduled to start in January 2027.
Crypto industry groups are escalating their legal challenge to Illinois over a new digital asset tax. The Blockchain Association and the Crypto Council for Innovation have asked a Circuit Court in Sangamon County to issue a preliminary injunction to stop the state from enforcing the law before it takes effect in January, according to The Block.
Illinois Gov. JB Pritzker signed the Digital Asset Tax Act into law as part of the state's fiscal year 2027 budget planning. The measure imposes a 0.2% tax on digital asset transactions and is set to begin in January 2027.
In a 34-page motion, the groups argue the tax is unprecedented and would cause irreparable harm to members. They also say compliance would require spending millions of dollars on an expedited basis without meaningful guidance, and that criminal penalties tied to the act create additional pressure.
The Blockchain Association and the Crypto Council for Innovation further claim the law violates the Illinois Constitution by treating digital assets differently from other assets, and they argue it conflicts with the federal Internet Tax Freedom Act. The Block reports the groups and the Digital Chamber previously sued Illinois over the tax, with the latest filing seeking immediate court relief.