Crypto industry files second lawsuit against Illinois' 0.2% digital asset tax

Legal pushback against Illinois’ newly introduced 0.2% crypto tax is expanding, with the Crypto Council for Innovation and the Blockchain Association filing an additional lawsuit against the state government. In a complaint submitted to a Sangamon County court on Friday, the two groups argued the tax law violates the U.S. Constitution, the Illinois Constitution and the Internet Tax Freedom Act. The suit marks a second legal challenge after the Digital Chamber filed its own case last month. In a statement, CCI CEO Ji Kim said the tax imposes a uniquely punitive burden on digital assets based solely on the underlying technology rather than the nature of the transaction, and argued that taxing only digital asset activity while exempting traditional assets amounts to illegally picking winners and losers through the tax system. The bill applies to companies based in Illinois or serving customers in the state with gross revenue of at least $100,000.