Crypto Industry Files Second Lawsuit Against Illinois Tax

Two major cryptocurrency industry groups have filed a second lawsuit challenging Illinois' new tax on digital asset transactions, seeking to block the levy before it takes effect on January 1, 2027. The Blockchain Association and the Crypto Council for Innovation filed their complaint on August 21, 2026, in the Sangamon County Circuit Court of the Seventh Judicial Circuit. The lawsuit targets the state's Digital Asset Tax Act, a 0.2% tax on the value of specified digital asset activities, arguing it is discriminatory and unconstitutional.

The legal action follows a similar challenge filed in July by the Digital Chamber, escalating industry opposition to the tax. Illinois officials, including Department of Revenue Director David Harris, Attorney General Kwame Raoul, and Sangamon County States Attorney John Milhiser, are named as defendants in their official capacities. The plaintiffs seek a judicial declaration that the tax is invalid and are requesting preliminary and permanent injunctions to prevent its enforcement. No court order has halted the law's implementation, so businesses must continue preparing for the January compliance deadline.

At the heart of the dispute is the...