cpeditor
- Two major crypto industry groups have stepped up their legal fight against Illinois over the state’s newly approved 0.2% digital asset tax.
- The Crypto Council for Innovation and Blockchain Association are challenging a levy that applies to businesses that facilitate or hold cryptocurrency for customers in Illinois.
- In their Friday filing, the groups claimed the tax violates the U.S. Constitution, Illinois Constitution and Internet Tax Freedom Act.
- The case adds to a growing legal battle, following the Digital Chamber’s lawsuit against the tax last month.
- CCI chief Ji Kim argued that Illinois is unfairly targeting digital assets based on their underlying technology rather than the substance of the transactions.
- The lawsuit was filed in Sangamon County and seeks to prevent the state from enforcing the tax on eligible businesses with more than $100,000 in total receipts.
- Illinois expects the measure could generate around $60 million, while critics argue firms could owe taxes even when their crypto transactions result in losses.
- Blockchain Association CEO Summer Mersinger said the tax could hurt digital commerce, create uncertainty and potentially fragment the U.S. crypto market.
