Two major cryptocurrency associations apply for an injunction: to block the enforcement of the cryptocurrency tax in Illinois

According to The Block, the Blockchain Association and the Crypto Council for Innovation filed a preliminary injunction motion on September 9 in the Sangamon County Circuit Court in Illinois, requesting to halt the new cryptocurrency tax in the state before it takes effect. This summer, Illinois Governor J.B. Pritzker signed the Digital Asset Tax Act, which proposes a 0.2% tax on digital asset transactions, set to take effect in January 2027.

Previously, the two associations, along with the Digital Chamber, filed a lawsuit against the state in August. In a 34-page motion, the organizations stated that the tax is unprecedented and has caused "irreparable harm" to industry members, and that if the bill takes effect, it will force businesses to comply hastily without clear guidance, facing the risk of criminal penalties. They also pointed out that the law violates the Illinois Constitution by implementing differential taxation on digital assets and contravenes the federal Internet Tax Freedom Act, which prohibits discriminatory taxes on e-commerce. The Illinois Governor's office has not yet responded to requests for comment.