US Crypto Industry Sues Illinois Over 0.2% Digital-Asset Transaction Tax
Summary
- The US cryptocurrency industry has filed a lawsuit to block Illinois from enforcing a 0.2% digital-asset transaction tax.
- The tax is due to take effect on Jan. 1, 2027, based on the value of the asset being traded rather than an investor’s profit.
- CCI and the Blockchain Association argue the tax could create a risk of double taxation and expose market participants to civil and criminal penalties.
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The US cryptocurrency industry has filed suit to block Illinois from imposing a 0.2% tax on digital-asset transactions. The levy would be based on the value of the asset traded rather than on an investor’s profit.
Cointelegraph reported on Aug. 24 that the Crypto Council for Innovation and the Blockchain Association sued Illinois to halt enforcement of the Digital Asset Tax Act. The tax is set to take effect on Jan. 1, 2027.
Illinois plans to impose a 0.2% charge on the value of assets involved in transactions, transfers and custody services through crypto brokers. The structure could result in taxes being owed even if an investor did not make a profit.
The groups argue that the tax violates both the US Constitution and the Illinois Constitution. They also contend that the rule is vague, raising the possibility of double taxation and exposing residents and brokers to civil and criminal penalties.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.