The Crypto Council for Innovation, or CCI, and the Blockchain Association filed a motion for a preliminary injunction on Wednesday in the Sangamon County Circuit Court of Illinois, according to CoinDesk, asking the court to halt enforcement of the state’s digital asset transaction tax while their lawsuit proceeds. The tax is set at 0.2% and would apply to entities headquartered in Illinois or offering services in the state if their gross revenue exceeds $100,000. It is scheduled to take effect on Jan. 1, 2027. The two lobbying groups, together with The Digital Chamber, sued Illinois last month, arguing that the tax violates the Internet Tax Freedom Act and the U.S. Constitution, and that the state is treating digital assets differently from other financial services. CCI CEO Ji Hun Kim said companies are being forced to spend millions of dollars on compliance systems even though basic questions, including what exactly is being taxed and when, remain unresolved. Blockchain Association CEO Summer Mersinger said Illinois would not be the last state to try such a measure if the law stands.
The Crypto Council for Innovation (CCI) and the Blockchain Association filed a motion for a preliminary injunction on Wednesday in the Sangamon County Circuit Court of Illinois, according to CoinDesk, seeking to pause enforcement of the state’s digital asset transaction tax while the case is being litigated.
The tax is set at 0.2% and would apply to entities headquartered in Illinois or offering services in the state if their gross revenue exceeds $100,000. It is scheduled to take effect on Jan. 1, 2027.
Last month, the two lobbying groups joined The Digital Chamber in suing the state of Illinois. They argue that the tax violates the Internet Tax Freedom Act and the U.S. Constitution, and that Illinois is taxing digital assets differently from other financial services.
CCI CEO Ji Hun Kim said companies are being forced to spend millions of dollars to build compliance systems even though basic issues, including what is being taxed and when taxation would apply, have not been clearly defined.
Blockchain Association CEO Summer Mersinger said that if the law is upheld, Illinois will not be the last state to attempt this kind of measure.
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