Crypto Advocates Launch Legal Fight Against Illinois Digital Asset Tax
- Crypto industry groups are escalating their opposition to Illinois’ new 0.2% tax on digital asset transactions.
- The Crypto Council for Innovation and Blockchain Association have sued Illinois, arguing that the new crypto levy is unconstitutional.
- The lawsuit targets the tax on companies that store or conduct cryptocurrency transactions for customers within the state.
- CCI and the Blockchain Association contend that Illinois’ measure violates the U.S. Constitution, the state constitution and the Internet Tax Freedom Act.
- The legal challenge follows a separate case filed by the Digital Chamber last month over the same tax.
- CCI leader Ji Kim said the policy unfairly places digital assets at a disadvantage compared with traditional financial assets.
- The groups filed their complaint in Sangamon County, seeking to block enforcement against businesses with more than $100,000 in receipts.
- While the tax could raise an estimated $60 million for Illinois, critics warn companies could face a tax bill even when their crypto transactions are unprofitable.
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