Two crypto industry groups have asked an Illinois court to block a new state tax on digital asset transactions before it comes into force. According to The Block, the Blockchain Association and the Crypto Council for Innovation filed a motion for a preliminary injunction on Sept. 9 in the Sangamon County Circuit Court. The filing targets Illinois’ newly signed Digital Assets Tax Act, which would impose a 0.2% tax on digital asset transactions starting in January 2027. The groups had already sued the state in August alongside The Digital Chamber.
In their 34-page motion, the two organizations argued that the tax is unprecedented and has already caused “irreparable harm” to industry members. They said the law would force businesses to rush into compliance without clear guidance and expose them to potential criminal penalties. The motion also claims the measure violates the Illinois Constitution by imposing differential taxation on digital assets and conflicts with the federal Internet Tax Freedom Act, which bars discriminatory taxes on electronic commerce. The Illinois governor’s office had not responded to a request for comment at the time of the report.
The Blockchain Association and the Crypto Council for Innovation asked an Illinois court to stop the state’s new digital asset tax before it takes effect, according to The Block.
The two groups filed a motion for a preliminary injunction on Sept. 9 in the Sangamon County Circuit Court in Illinois. The filing seeks to halt enforcement before the new tax becomes effective.
Tax signed this summer would start in 2027
Illinois Governor Pritzker signed the Digital Assets Tax Act this summer. The law proposes a 0.2% tax on digital asset transactions and is scheduled to take effect in January 2027.
Before this latest filing, the Blockchain Association and the Crypto Council for Innovation had already sued the state in August together with The Digital Chamber.
Groups say the measure has already caused harm
In their 34-page motion, the two organizations said the tax is unprecedented and has already caused “irreparable harm” to industry members. They argued that if the law takes effect, companies would be forced to comply on short notice without clear guidance and would face the risk of criminal penalties.
Motion cites state and federal legal conflicts
The groups also said the law violates the Illinois Constitution by imposing differential taxation on digital assets. They further argued that it conflicts with the federal Internet Tax Freedom Act, which prohibits discriminatory taxes on electronic commerce.
The Illinois governor’s office had not responded to a request for comment.
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