Crypto industry lobbying group asks court to halt Illinois digital assets tax

According to CoinDesk, the Crypto Council for Innovation (CCI) and the Blockchain Association filed a motion for a preliminary injunction with an Illinois court on Wednesday, seeking to halt the state's Digital Assets Tax Act before its effective date of January 1, 2027. The tax act was passed on the final day of this year's legislative session, imposing a 0.2% rate on entities headquartered in the state or providing services there with annual gross revenues exceeding $100,000. Both organizations previously sued the bill alongside the Digital Chamber last month, alleging it violates the principle of federal preemption. The filing states that member enterprises have already suffered "irreparable harm" due to the necessity of building compliance systems. CCI CEO Ji Hun Kim stated that businesses are required to spend millions of dollars developing systems for a tax that is unconstitutional and unclear in both scope and timing; Blockchain Association CEO Summer Mersinger stated that since the state cannot collect the relevant taxes during the litigation, "[t]he loss to the state government from waiting is minimal, while the loss to all parties if they continue to proceed would be significant."