Crypto advocates join in suing Illinois over digital asset tax
Crypto industry groups have filed a lawsuit against Illinois, challenging a new tax on digital asset transactions. The plaintiffs argue the tax is unconstitutional and unfairly discriminates against crypto compared to traditional financial assets.
Why it matters
This legal battle represents a growing trend of industry-led challenges against state-level regulatory and tax frameworks targeting the cryptocurrency sector.
The Crypto Council for Innovation and the Blockchain Association sued the state on Friday , claiming the crypto tax violates the U.S. Constitution, Illinois Constitution and the Internet Tax Freedom Act. Its legal volley joins an earlier lawsuit filed last month by the Digital Chamber .
"This tax singles out digital assets for uniquely punitive treatment based on the underlying technology rather than the substance of the transaction itself," said Ji Kim, who leads CCI, in a statement. "A tax on digital asset activity with no equivalent tax for traditional assets unlawfully picks winners and losers through the tax code."
Filed in Sangamon County, the latest lawsuit seeks to head off the state's tax, which applies to firms that are based in Illinois or provide services to residents with total receipts of more than $100,000.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in