Illinois crypto groups seek injunction against new tax

The Blockchain Association and Crypto Council for Innovation sued Illinois on Aug. 21 to block a 0.2% digital asset tax scheduled to take effect on Jan. 1, 2027. Summary Two industry groups sued Illinois to block its 0.2% digital asset tax before implementation begins. The tax takes effect January 1, 2027, covering specified exchanges, transfers and storage services statewide. Plaintiffs allege seven federal and state legal violations, including discriminatory internet taxation and vagueness claims. The complaint seeks preliminary and permanent injunctions, but no court has blocked enforcement yet statewide. Illinois House Bill 5798 proposes complete repeal but has not advanced beyond its filing stage. The complaint was filed in the Seventh Judicial Circuit Court in Sangamon County. It names Illinois Revenue Director David Harris, Attorney General Kwame Raoul and Sangamon County State’s Attorney John Milhiser as defendants in their official capacities. The filing is the second industry lawsuit challenging the Illinois crypto tax. The Digital Chamber brought a separate case in July. Illinois crypto tax covers transactions and custody Illinois Public Act 104-468 imposes a 0.2% tax on...