TREE NEWS update: Crypto Council for Innovation and Blockchain Association have sued Illinois officials over a 0.2% digital asset tax, set to take effect in January 2027. The groups argue the tax, based on transaction volume, violates the U.S. and Illinois constitutions, federal and state due process, and the Internet Tax Freedom Act, potentially causing double taxation. This follows a similar lawsuit by Digital Chamber in July.
CCI, Blockchain Association Sue Illinois Over 0.2% Crypto Tax
This is the second industry-led constitutional challenge to a state-level digital asset tax in months, which suggests trade groups are testing whether transaction-volume levies can survive scrutiny under the Internet Tax Freedom Act and due process clauses. The outcome matters beyond Illinois: a ruling either way could shape how other states structure crypto tax regimes, and it signals that litigation, not legislation, is becoming the primary venue for resolving these questions. Whether the courts consolidate or diverge on these challenges is the open question.
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