Blockchain Association and Crypto Council for Innovation File Motion for Summary Judgement Asking Court to Strike Down Illinois Digital Asset Tax

Washington, D.C. (November 4, 2026) – Today, Blockchain Association and the Crypto Council for Innovation filed a motion for summary judgment in the Circuit Court of Sangamon County, Illinois, asking the court to declare the State of Illinois’s Digital Asset Tax Act unlawful and permanently bar its enforcement.

The two organizations first jointly challenged the unlawful State tax in August and asked the court to block it before it takes effect in September. In October, the State agreed to pause the tax until July 1, 2027. Today’s motion asks the court to decide the case on the merits and strike the tax down for good.

The Digital Asset Tax Act imposes a 0.2% tax on the full value of a digital asset every time an Illinois customer exchanges, transfers, or stores it through a broker, even when no sale, gain, or change in ownership occurs. Illinois imposes no comparable tax on dollars, gold, stocks, or any other asset, and no other state imposes a tax like it. The tax is preempted by the federal Internet Tax Freedom Act, which bars states from imposing taxes on electronic commerce that they do not impose on similar offline transactions. It also violates the dormant Commerce Clause, the Due Process Clause, and the Illinois Constitution. 

“Illinois does not tax you for trading dollars for euros, buying a gold bar, or keeping cash in a bank. But do the same thing with Bitcoin or a dollar-backed stablecoin and the State takes a cut of the full value, every single time. That is exactly the kind of discrimination Congress outlawed in the Internet Tax Freedom Act. The Illinois Supreme Court has already enforced that law to strike down a discriminatory tax, and the same result should follow here. These are legal questions the court can answer today, and Illinois consumers and businesses should not have to pay or keep building around a tax that cannot survive,” said Ashok Pinto, Executive Vice President of Legal and Government Relations, Blockchain Association.

“Illinois only recently enacted a serious regulatory framework for digital assets, and CCI has worked with state officials to get it right. This tax cuts against that work by imposing a first-in-the-nation tax on digital-asset activities and stunting the growth of this emerging and innovative industry. The tax was written without public input, is unclear and unworkable, and puts Illinois consumers and businesses at a disadvantage. The millions of Illinoisans who own and use digital assets should not be forced to bear an invalid tax” said Ji Hun Kim, Chief Executive Officer, Crypto Council for Innovation.

The motion is available here.

Media Contacts:
Blockchain Association: Curtis Kincaid, curtis@theblockchainassociation.org
Crypto Council for Innovation: Amanda Russo, amanda@cryptocouncil.org

About Blockchain Association
Blockchain Association is the leading nonprofit membership organization dedicated to promoting a pro-innovation policy environment for the digital asset industry. Blockchain Association represents more than 100 member companies, including software developers, infrastructure providers, exchanges, custodians, investors, and other organizations supporting the public blockchain ecosystem.

About the Crypto Council for Innovation
The Crypto Council for Innovation is the premier global alliance for advancing crypto innovation. CCI represents the sector’s leading firms as we advocate for clear evidence-based policies that support responsible innovation using blockchain technology. It has teams in Washington D.C., New York, San Francisco, Brussels, London, and Hong Kong.