- The Crypto Council for Innovation and Blockchain Association have filed a new lawsuit challenging Illinois’ recently enacted 0.2% tax on cryptocurrency activity.
- The latest legal challenge targets a state tax imposed on businesses that process or hold digital assets for customers in Illinois.
- CCI and the Blockchain Association argue that the tax breaches the U.S. Constitution, the Illinois Constitution and the Internet Tax Freedom Act.
- The lawsuit, filed Friday, comes after the Digital Chamber brought its own case against the state last month.
- CCI CEO Ji Kim said Illinois is unfairly treating digital assets differently from traditional financial assets because of the technology used.
- Filed in Sangamon County, the case seeks to stop the tax from taking effect for qualifying businesses based in Illinois or serving residents and generating more than $100,000 in receipts.
- The levy is projected to bring roughly $60 million into the state budget, but opponents say companies could face the tax even when their crypto transactions generate losses.
- Blockchain Association CEO Summer Mersinger said the policy could disadvantage digital businesses, increase regulatory uncertainty and disrupt the development of a nationwide crypto market.
Crypto Industry Takes Illinois to Court Over Digital Asset Tax
