Crypto industry groups unite in legal battle against Illinois digital asset tax despite temporary postponement
Despite Illinois authorities agreeing to postpone a 0.2% cryptocurrency tax for six months, industry advocacy groups continue pressing for a final court ruling on the tax's legality.
The Blockchain Association (BA) and Crypto Council for Innovation (CCI) announced their intention to collaborate with the Digital Chamber alongside other organizations in pressing forward with legal action challenging Illinois's tax on digital assets, which is scheduled to become operational in 2027.
Through a court filing submitted on Tuesday to the Circuit Court of Sangamon County, these cryptocurrency advocacy groups requested judicial approval for an accelerated timeline toward summary judgment "to reach a decision on the tax's lawfulness as quickly as possible." The document referenced both the lawsuit brought by the CCI and BA against state officials in Illinois, along with a separate legal challenge filed by the Digital Chamber in partnership with the Illinois Blockchain Association.
"While pausing enforcement of the Digital Asset Tax Act protects Illinois consumers and businesses from this onerous and legally flawed tax until July 1, it remains imperative that the merits are determined as soon as possible," said CCI CEO Ji Kim.
State officials in Illinois consented earlier this month to postpone the implementation of the 0.2% cryptocurrency tax legislation by a half-year period, pushing the effective date from Jan. 1 to July 1, 2027. This determination, which formed part of the Digital Chamber's litigation strategy, emerged as a response to allegations that the digital asset tax had been "slipped into the state's budget" without proper legislative debate or opportunities for public input. At that juncture, Digital Chamber CEO Cody Carbone indicated that his organization planned to pursue legal action "until this tax is struck down for good."
Should the court grant approval for the expedited schedule, a judicial determination regarding the law's merits could potentially be rendered by March.
Leadership shakeup at Blockchain Association this week
Summer Mersinger is set to relinquish her position as CEO of the Blockchain Association on Friday as the organization undergoes a leadership transition. Mersinger became part of the advocacy organization last year following her departure from the US Commodity Futures Trading Commission.
The organization's previous CEO, Kristin Smith, will assume the role of interim head, while Mersinger is anticipated to remain with the organization through the end of 2026.