Blockchain Association and Crypto Council for Innovation File Suit Against Illinois Over Digital Asset Tax Act

Washington, D.C. (August 21, 2026) – Today, the Crypto Council for Innovation and the Blockchain Association filed a lawsuit in the Circuit Court of Sangamon County challenging the State of Illinois’s unconstitutional and unlawful Digital Asset Tax Act.

This tax punishes innovation and discriminates against digital-asset businesses and users. Our lawsuit asks the court to declare the Digital Asset Tax Act unlawful and enter preliminary and permanent injunctive relief barring the State from enforcing it.

As the complaint makes clear: The Digital Asset Tax Act imposes a tax on digital-asset activities that is unprecedented nationwide. It was pushed through both legislative chambers within hours, without any meaningful debate or public notice.

Unsurprisingly, this flawed and unlawful process led to a flawed and unlawful statute. The tax violates the U.S. Constitution (including the dormant Commerce Clause doctrine), the Illinois Constitution, the federal Internet Tax Freedom Act, and the Illinois and federal Due Process Clauses.

“This tax singles out digital assets for uniquely punitive treatment based on the underlying technology rather than the substance of the transaction itself. A tax on digital asset activity with no equivalent tax for traditional assets unlawfully picks winners and losers through the tax code. Additionally, this first-of-its-kind tax warranted careful study and public input, which did not happen. The significant number of Illinoisians, both individuals and businesses, who use or transact in digital assets were denied that opportunity,” said Ji Hun Kim, Chief Executive Officer, Crypto Council for Innovation.

“States have an important role to play in fostering innovation, but that authority has constitutional limits. Illinois cannot impose a novel tax regime that discriminates against digital commerce, creates uncertainty for consumers and businesses, and threatens to fragment a rapidly growing national market. Digital asset companies should be able to build and compete in the United States under clear, lawful rules—not navigate a patchwork of punitive state policies. We are bringing this challenge to protect those fundamental principles and ensure Illinois stays within the bounds of the law,” said Summer Mersinger, CEO of Blockchain Association.

The complaint is available here.

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

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.

About the 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.