In a recent statement, Summer Mersinger, CEO of the Blockchain Association, emphasized that Illinois would be unable to utilize any funds expected to be collected during the ongoing legal proceedings, suggesting that “the State faces minimal risk by postponing. In contrast, others would suffer significant losses by moving forward.”
Much of the arguments presented on Wednesday reflect those previously articulated by the cryptocurrency sector: that both the Internet Tax Freedom Act and the U.S. Constitution take precedence over Illinois’ state tax concerning digital asset transactions. Additionally, the claims highlighted that the state is applying different standards to digital assets compared to other financial services.
The filing noted, “Illinois typically does not impose taxes on transactions or services concerning financial assets, except for income and capital gains related to these transactions or services. Furthermore, it does not apply sales taxes to activities involving intangible personal property, which includes most financial assets, and these regulations specifically exempt money and precious metals.”
Mersinger also warned that other states might follow Illinois’ lead if the state prevails in this matter: “Should this Act remain in effect, Illinois will likely inspire other states to pursue similar measures.”