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Crypto trade groups seek to block Illinois 0.2% crypto tax by Jan. 2027

The Crypto Council for Innovation and the Blockchain Association argue the tax would force firms to spend millions on compliance ahead of a January 1, 2027 deadline and expose them to criminal penalties.

Reported · Written up by our desk · Regulation

The Crypto Council for Innovation and the Blockchain Association have asked a court to stop Illinois from enforcing its 0.2% tax on cryptocurrency transactions before it takes effect in January 2027, according to Cointelegraph.

The groups filed a motion for a preliminary injunction in the Circuit Court of Sangamon County, Illinois, saying they want to prevent what they describe as irreparable harm to digital asset firms. CCI CEO Ji Hun Kim said companies are being pushed to build systems for a tax that they contend violates constitutional rights, while also facing criminal penalties and being forced to divert resources ahead of the Jan. 1 deadline.

Illinois Governor JB Pritzker signed the measure into law in June as a “privilege tax” included in the state’s fiscal year 2027 budget. The law requires crypto users to be taxed based on transaction volume rather than income.

CCI and the Blockchain Association previously filed a lawsuit challenging the digital asset tax on constitutional and legal grounds, including claims that it violates due process and the federal Internet Tax Freedom Act. Another trade group, the Digital Chamber, filed a similar suit days earlier, and Illinois is also pursuing a separate regulatory effort aimed at prediction markets, including Kalshi, Cointelegraph reported.

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