The cryptocurrency sector is intensifying its legal confrontations with Illinois regarding its recent legislation that mandates a 0.2% tax on businesses involved in transactions or custody of crypto for clients within the state’s jurisdiction. Two additional advocacy organizations have now initiated another lawsuit against this measure.
The Crypto Council for Innovation and the Blockchain Association filed suit against the state on Friday, asserting that the crypto tax infringes upon the U.S. Constitution, the Illinois Constitution, and the Internet Tax Freedom Act. This legal action adds to a prior lawsuit that the Digital Chamber lodged last month.
“This tax uniquely targets digital assets for harsh treatment based on the technology involved, rather than the nature of the transaction itself,” stated Ji Kim, head of CCI, in a press release. “Imposing a tax on digital asset activities without a similar tax on traditional assets unfairly advantages certain types of transactions over others through tax policy.”
Initiated in Sangamon County, the new lawsuit aims to block the state’s tax, which affects companies operating in Illinois or offering services to state residents with total revenues exceeding $100,000.