Crypto groups seek preliminary injunction against Illinois' 0.2% digital-asset tax

  • Crypto Council for Innovation and Blockchain Association sought an injunction against Illinois' Digital Asset Tax Act.
  • Illinois' law imposes a 0.2% tax on specified broker-facilitated digital-asset activity.
  • Illinois projects the tax will generate about $60 million annually after taking effect.

The Crypto Council for Innovation and Blockchain Association have asked the Circuit Court of Sangamon County to temporarily block Illinois' 0.2% Digital Asset Tax Act before it takes effect on Jan. 1, 2027. Their Sept. 9 preliminary-injunction motion follows an August lawsuit challenging the law, which taxes certain digital assets exchanged, transferred or held through brokers and requires brokers to register with the Illinois Department of Revenue. The groups argue the tax, enacted through Public Act 104-0468, can exceed a broker's fee income, potentially apply three times to one transaction and impose unrecoverable compliance costs under threat of criminal penalties. Their 34-page brief alleges violations of the Internet Tax Freedom Act, the dormant Commerce Clause, constitutional vagueness standards and Illinois' single-subject rule. The challenge targets a state levy rather than federal crypto rules, highlighting how tax treatment can diverge across jurisdictions even as Congress debates market-structure legislation. A separate Digital Chamber lawsuit is pending in the same court, while Illinois projects the tax will raise about $60 million annually. The court has not ruled on either the injunction request or the underlying challenges. Bitcoin traded near $77,861, down about 1.6% over 24 hours on Sept. 10, 2026, while ether was around $2,465; no link between those moves and the Illinois litigation was established.

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