Trade groups seek to block Illinois crypto tax before January

The Crypto Council for Innovation and the Blockchain Association are asking an Illinois court to stop the state from enforcing a 0.2% tax on cryptocurrency transactions before it takes effect in January 2027. The groups filed a motion for a preliminary injunction in Sangamon County, arguing that the tax would create major compliance costs for digital asset companies and could violate constitutional protections and federal law. Illinois approved the measure in June as part of its fiscal year 2027 budget, making it the first state to specifically tax crypto transactions. The groups had already filed a lawsuit challenging the law, and another trade group, the Digital Chamber, has also sued over the policy.