Crypto industry groups seek injunction against Illinois digital asset tax

Two trade associations representing cryptocurrency firms have asked a Sangamon County circuit court to block Illinois’ newly enacted Digital Asset Tax Act before it takes effect.

Legal motion filed

On Thursday, the Blockchain Association and the Crypto Council for Innovation submitted a motion for a preliminary injunction, arguing that the state should not enforce the tax pending a full hearing.

Details of the tax

The Digital Asset Tax Act, signed by Governor J.B. Pritzker as part of the FY 2027 budget, imposes a 0.2 % levy on digital‑asset transactions. The law is slated to become effective in January 2027.

Industry objections

The associations contend the tax is unprecedented and would cause “irreparable harm” to their members, who would need to spend millions to achieve compliance without clear guidance and face potential criminal penalties.

They also argue the statute violates the Illinois Constitution by treating digital assets differently from other property, and conflicts with the federal Internet Tax Freedom Act, which bars discriminatory taxes on electronic commerce.

Current status

The lawsuit was originally filed in August, and the groups are now seeking immediate relief. The governor’s office has not responded to requests for comment.