Crypto industry group sues Illinois over planned 0.2% crypto transaction tax

Crypto industry lobbying group the Crypto Council for Innovation has sued Illinois state authorities to block the planned implementation of a 0.2% cryptocurrency transaction tax, Cointelegraph reported. The tax is scheduled to take effect in January 2027 and would be levied based on transaction volume rather than an investor’s income or profit. In its complaint, the group argued the tax violates both the U.S. Constitution and the Illinois Constitution. It also said the measure could result in double taxation, is overly vague, and shifts unclear burdens onto residents and brokers while exposing them to potential civil and criminal penalties.