Digital asset advocacy groups Crypto Council for Innovation and Blockchain Association have filed a lawsuit against Illinois officials over the state’s 0.2% cryptocurrency tax. According to Odaily, the tax is scheduled to take effect in January 2027 and would be levied on transaction volume rather than income.

The complaint was filed in Sangamon County’s Seventh Judicial Circuit Court and argues that the tax violates the U.S. Constitution, the Illinois Constitution, federal and state due process laws, and the Internet Tax Freedom Act. It also says the measure could result in double taxation and is too vague, placing compliance obligations on residents and brokers while exposing them to civil and criminal penalties.

Blockchain Association CEO Summer Mersinger said Illinois cannot impose a tax regime that discriminates against digital commerce or increases uncertainty for consumers and businesses. The Digital Chamber filed a similar lawsuit in July, saying the tax discriminates against digital asset traders.