CCI and Blockchain Association challenge Illinois crypto tax

The Crypto Council for Innovation and Blockchain Association filed a lawsuit against Illinois officials over the state's 0.2% cryptocurrency tax. Illinois expects to enforce the tax starting in January 2027. Governor JB Pritzker signed the measure into law as a privilege tax in June. The tax applies to transaction volume rather than income. The groups argue that the tax violates the US Constitution and Illinois' constitution. They also cite federal and state due process laws and the federal Internet Tax Freedom Act. The groups argue that the law is unconstitutionally vague because residents and brokers must determine how digital assets are taxed under potential civil and criminal penalties. The groups also claim that the tax could create duplicative taxation under the Commerce Clause. The lawsuit follows a similar case filed by the Digital Chamber in July. The Digital Chamber argues that the tax discriminates against people who transact in digital assets. Separately, prediction market platform Kalshi sued Illinois officials over a law that took effect on July 1.