A trade group argues the new 0.2% tax on crypto transactions violates federal law and state constitutional provisions.
A crypto industry lobbying group filed a federal lawsuit to block Illinois’ 0.2% digital asset tax set to take effect in January. The suit claims the tax violates the U.S. Constitution’s Commerce Clause and the Internet Tax Freedom Act by targeting electronic commerce unfairly.
The tax, approved last month, applies to firms based in or operating in Illinois with gross receipts exceeding $100,000. Lawmakers passed the measure with little notice before the legislative session ended. The group also alleges the tax breaches Illinois’ uniformity and due process clauses.
No immediate market reaction was reported following the lawsuit’s filing on Tuesday.