U.S. crypto industry seeks injunction against Illinois transaction tax

The U.S. crypto industry has asked a court to halt Illinois’ 0.2% cryptocurrency transaction tax, scheduled to take effect in January 2027, until the underlying lawsuit is resolved. Crypto Council for Innovation and the Blockchain Association argued in a filing submitted on Sept. 8 that companies are already bearing system build-out costs worth millions of dollars to prepare for a tax they contend is potentially unconstitutional, CoinDesk reported. The groups said the burden amounts to irreparable harm. They also argue the tax conflicts with federal law and the U.S. Constitution while discriminating against cryptocurrency transactions versus other financial services. The industry sued Illinois last month to block implementation of the same tax.