Crypto Groups Sue Illinois Over New Digital Asset Tax

The Crypto Innovation Council and the Blockchain Association have filed a lawsuit in Sangamon County, Illinois, challenging the state’s newly approved digital asset tax. According to Odaily, the law requires businesses that trade or store cryptocurrency for customers in Illinois to pay a tax equal to 0.2% of transaction volume.The plaintiffs said the tax violates the U.S. Constitution, the Illinois Constitution, and the Internet Tax Freedom Act. The Chamber of Digital Commerce filed a separate lawsuit last month. The tax applies to companies based in Illinois or serving state residents with annual revenue above $100,000, and it is expected to raise about $60 million for the state budget. Critics said the tax is based on transaction volume, meaning taxpayers would owe it even if they lost money on crypto trades.