CCI and the Blockchain Association sue Illinois officials: opposing the 0.2% digital asset tax

The digital asset advocacy organizations Crypto Council for Innovation (CCI) and Blockchain Association (BA) have filed a lawsuit against Illinois officials, opposing the state's 0.2% cryptocurrency tax. This tax is expected to take effect from January 2027, taxing based on transaction volume rather than income.

The two organizations submitted the lawsuit in the Sangamon County Seventh Judicial Circuit Court, claiming that the tax violates the U.S. Constitution, the Illinois Constitution, federal and state due process laws, and the Internet Tax Freedom Act, and may result in double taxation. The lawsuit also states that the tax regulations are overly vague, placing compliance responsibilities on residents and brokers, and exposing them to civil and criminal penalties.

Blockchain Association CEO Summer Mersinger stated that Illinois cannot implement a tax system that discriminates against digital businesses and increases uncertainty for consumers and enterprises. The Digital Chamber filed a similar lawsuit in July regarding the same tax, claiming it discriminates against digital asset traders.