Illinois crypto tax faces court challenge before Jan. 1 start

The Crypto Council for Innovation and the Blockchain Association have asked an Illinois court to block the state's 0.2% digital asset tax before it takes effect Jan. 1, arguing the levy is imposed regardless of profit and could tax a single transaction up to three times. The groups, which joined the lawsuit against the law approved over industry objections, had earlier sought a preliminary injunction to suspend the levy while the case proceeds.

• Digital Chamber CEO Cody Carbone said the group sued because the tax was "discriminatory on digital asset activity" and was "passed in the dark of night" without proper deliberation.
• The legal fight continues as the tax's implementation date approaches.