A pair of digital asset industry associations speaking for numerous cryptocurrency companies are stepping up their courtroom battle in Illinois concerning a disputed crypto levy.
On Wednesday, within an Illinois Circuit Court located in Sangamon County, the Blockchain Association alongside the Crypto Council for Innovation submitted a preliminary injunction request to prevent the state of Illinois from putting its recent tax measure into practice before its January implementation date.
During the summer months, Illinois Governor JB Pritzker enacted the Digital Asset Tax Act as a component of the state’s budget strategy for the 2027 fiscal year. This statute places a 0.2% levy on cryptocurrency transactions and is set to become active in January 2027. Digital asset organizations such as the BA and CCI promptly condemned the fresh tax, and by August, these two associations together with The Digital Chamber had initiated legal action against Illinois regarding the matter.
Within their 34-page injunction request, the CCI and BA assert that this new tax is entirely without precedent and inflicts “irreparable harm” upon their participants.
“The plaintiffs—representing two prominent digital-asset trade coalitions—along with their constituents, are forced to expend millions attempting to meet the Act’s requirements on an accelerated schedule, lacking adequate direction, and facing the statute’s potential criminal consequences,” the organizations stated. “Should the Act become operational, the digital-asset sector will endure unfixable damage, even assuming adherence were feasible.”
Furthermore, the coalitions contend that the taxation statute breaches the Illinois Constitution by applying different rules to digital assets compared to alternative property types. They additionally maintain that the levy runs afoul of the Internet Tax Freedom Act, which is a federal statute prohibiting state and municipal authorities from levying internet access and from enforcing biased taxes on digital commerce.
Governor Pritzker’s administration did not offer an immediate reply when asked for a statement.
Originally published at https://www.theblock.co/news/regulation/2026-09-09-crypto-industry-groups-escalate-fight-illinois-asking-court-block-crypto-tax-414036.
