Crypto Groups Seek Preliminary Injunction to Block Illinois's Digital Asset Tax Act

coingape.com · Boluwatife Adeyemi · September 9, 2026

# Crypto Groups Seek Preliminary Injunction to Block Illinois's Digital Asset Tax Act

Author: Boluwatife Adeyemi Published: 2026-09-09T14:50:01+00:00 Source: coingape.com (coingape.com) Language: en

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# Crypto Groups Seek Preliminary Injunction to Block Illinois’s Digital Asset Tax Act

53 mins ago Updated 51 mins ago

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Expertise : Crypto, Stocks, Tokenization, AI, Prediction Markets, Crypto Regulation

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Highlights

- The Crypto Council for Innovation and Blockchain Association have filed a motion for a preliminary injunction. - They are seeking to block the Illinois crypto law from taking effect on January 1. - Digital Chamber had earlier sued Illinois to block the crypto tax law.

The Crypto Council for Innovation and Blockchain Association have filed a joint motion seeking a preliminary injunction to block the Illinois crypto tax law from taking effect next year. These groups join the Digital Chamber, which previously sued the state to block the legislation as well.

## Crypto Associations File Motion Against The Illinois Crypto Tax Law

The Crypto Council for Innovation and Blockchain Association asked the court, in its joint motion, to grant a preliminary injunction barring the state from enforcing the Act to prevent irreparable harm and preserve the status quo.

The crypto groups argued that the “discriminatory” tax law would leave them and their members spending millions of dollars trying to comply with the Act on an expedited basis without meaningful guidance and under the threat of the Act’s criminal penalties.

“Even if compliance were possible, the digital-asset industry will suffer irreparable harm if the Act takes effect,” they argued. In June earlier this year, Governor JB Pritzker signed the Illinois crypto tax law, which imposes a 0.2% tax on crypto transactions and has raised concerns because it does not exempt daily transactions or include a de minimis rule.

Notably, the Digital Chamber sued Illinois in July, urging the court to halt the Act before it goes into effect on January 1 next year. The crypto group argued that the tax is unfair because digital asset activities receive different tax treatment than similar activities in traditional financial systems.

## CCI And BA Tackle The Legislative Process

The two crypto groups argued in their joint motion that the legislature rushed the Illinois crypto tax law “within hours,” without meaningful debate, and despite concerns from legislators about the Act’s lawfulness. “A discriminatory and novel tax of this magnitude should have been informed by careful legislative deliberation,” they asserted.

The Crypto Council for Innovation and Blockchain Association also noted that the General Assembly publicly revealed the Act only on the last day of its 2026 session, and that the Act is only a small part of a 1,624-page bill that addresses everything. The Act also imposes a 1.75% levy on sports bets placed on prediction market platforms.

Furthermore, they argued that the Illinois crypto tax law violates the federal Internet Tax Freedom Act by taxing internet commerce and also violates the dormant Commerce Clause because its novel tax discriminates against interstate commerce.

Commenting on the tax law, Crypto Council’s CEO Ji Kim said, “The harm to our industry if this takes effect would be irreparable. CCI and BA filed our motion for preliminary injunction to stop this punitive law. This cannot stand.”

For more on crypto regulation, check out Best Crypto Compliance Companies and KYC Providers for Web3 Enterprises

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author

Boluwatife Adeyemi is a well-experienced crypto news writer and editor with a focus on macro topics, crypto policy and regulation and the intersection between DeFi and TradFi. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.

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Illinois News

September 2026