The Crypto Council for Innovation and Blockchain Association have filed a joint motion seeking a preliminary injunction to block the Illinois crypto tax law from taking effect next year. These groups join the Digital Chamber, which previously sued the state to block the legislation as well.
Crypto Associations File Motion Against The Illinois Crypto Tax Law
The Crypto Council for Innovation and Blockchain Association asked the court, in its joint motion, to grant a preliminary injunction barring the state from enforcing the Act to prevent irreparable harm and preserve the status quo.
The crypto groups argued that the “discriminatory” tax law would leave them and their members spending millions of dollars trying to comply with the Act on an expedited basis without meaningful guidance and under the threat of the Act’s criminal penalties.
“Even if compliance were possible, the digital-asset industry will suffer irreparable harm if the Act takes effect,” they argued. In June earlier this year, Governor JB Pritzker signed the Illinois crypto tax law, which imposes a 0.2% tax on crypto transactions and has raised concerns because it does not exempt daily transactions or include a de minimis rule.
Notably, the Digital Chamber sued Illinois in July, urging the court to halt the Act before it goes into effect on January 1 next year. The crypto group argued that the tax is unfair because digital asset activities receive different tax treatment than similar activities in traditional financial systems.
CCI And BA Tackle The Legislative Process
The two crypto groups argued in their joint motion that the legislature rushed the Illinois crypto tax law “within hours,” without meaningful debate, and despite concerns from legislators about the Act’s lawfulness. “A discriminatory and novel tax of this magnitude should have been informed by careful legislative deliberation,” they asserted.
The Crypto Council for Innovation and Blockchain Association also noted how the General Assembly only publicly revealed the Act on the last day of their 2026 session, with the Act forming only a small part of a 1,624-page bill that addresses everything. The Act also imposes a 1.75% levy on sports bets placed on prediction market platforms.
Furthermore, they argued that the Illinois crypto tax law violates the federal Internet Tax Freedom Act by taxing internet commerce and also violates the dormant Commerce Clause because its novel tax discriminates against interstate commerce.
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