CCI and Blockchain Association Sue Illinois Officials Over 0.2% Digital Asset Tax

Digital asset advocacy groups Crypto Council for Innovation (CCI) and Blockchain Association (BA) have sued Illinois officials over the state’s 0.2% crypto tax. The complaint was filed in Sangamon County’s Seventh Judicial Circuit Court. According to the filing, the tax is expected to take effect in January 2027 and would be levied on transaction volume rather than income. CCI and BA say the measure violates the U.S. Constitution, the Illinois Constitution, federal and state due process laws, and the Internet Tax Freedom Act. The lawsuit also says the tax could create double taxation and is written too vaguely, placing compliance responsibility on residents and brokers while exposing them to civil and criminal penalties. Blockchain Association CEO Summer Mersinger said Illinois cannot impose a tax system that discriminates against digital commerce or increases uncertainty for consumers and businesses. Digital Chamber filed a similar lawsuit in July over the same tax, saying it discriminates against digital asset traders.