The Blockchain Association and Crypto Council for Innovation sued Illinois on Aug. 21, 2026, seeking to block the state’s first-in-the-nation 0.2% Digital Asset Tax Act before it takes effect in January 2027. The tax is calculated on the value or volume of covered digital-asset transactions rather than customer profits or broker revenue, potentially creating exposure even where no gain is realized. The complaint, filed in the Seventh Judicial Circuit Court in Sangamon County, alleges violations of the U.S. Constitution, Illinois Constitution, federal and state due process protections and the Internet Tax Freedom Act. The groups also say the law is vague, could result in double taxation, shifts uncertain compliance duties to residents and brokers, and exposes them to civil and criminal penalties. The plaintiffs seek preliminary and permanent injunctions, but no court has yet suspended enforcement. A separate case filed by the Digital Chamber on July 21 also challenges the tax as discriminatory, while Illinois House Bill 5798 would repeal it but has not advanced. The state estimates the levy could generate approximately $60 million annually, although that revenue remains uncertain amid litigation and the possible repeal.