Crypto groups sue Illinois over 0.2% digital-asset activity tax

The lawsuit is a pre-enforcement challenge. It asks the court for declaratory and injunctive relief, but the filing does not show that the court has granted an injunction or ruled on the groups' claims.

What the law would tax

The Illinois statute imposes the tax beginning Jan. 1, 2027, on the privilege of receiving digital-asset business activity from a customer in Illinois. The rate is 0.2% of the value of the digital asset connected to the activity, and the law assigns collection duties to covered digital-asset brokers.

The act defines covered activity to include exchanging, transferring or storing a digital asset through a broker. It excludes some peer-to-peer and decentralized activity, so the statutory text does not mean that every self-custody transfer would automatically be taxed.

The groups' constitutional claims

The complaint alleges that the act violates the federal Internet Tax Freedom Act, the dormant Commerce Clause, due-process protections and provisions of the Illinois Constitution. The plaintiffs also argue that the legislature passed the measure through a rushed process that violated state procedural rules.

Those are allegations, not findings. The case now puts the law's scope, tax base and enforcement mechanics before an Illinois court. The next meaningful development will be a response from the state or a ruling on the plaintiffs' request for preliminary relief.