Crypto advocates join in suing Illinois over digital asset tax

Crypto advocates join in suing Illinois over digital asset tax The Crypto Council for Innovation and the Blockchain Association added another lawsuit against the state for its recently approved 0.2% crypto tax. - Two more crypto trade associations have added to the legal challenges of Illinois’ new crypto tax. - The Crypto Council for Innovation and the Blockchain Association followed last month’s court filing from the Digital Chamber in making legal arguments against the state’s digital assets fundraising measure. The crypto industry is piling more legal challenges on Illinois over its new law that imposes a 0.2% tax on businesses transacting or storing crypto for customers within its borders, with two more advocacy groups filing another lawsuit. The Crypto Council for Innovation and the Blockchain Association sued the state on Friday, claiming the crypto tax violates the U.S. Constitution, Illinois Constitution and the Internet Tax Freedom Act. Its legal volley joins an earlier lawsuit filed last month by the Digital Chamber. "This tax singles out digital assets for uniquely punitive treatment based on the underlying technology rather than the substance of the transaction itself," said Ji Kim, who leads CCI, in a statement. "A tax on digital asset activity with no equivalent tax for traditional assets unlawfully picks winners and losers through the tax code." Filed in Sangamon County, the latest lawsuit seeks to head off the state's tax, which applies to firms that are based in Illinois or provide services to residents with total receipts of more than $100,000. The tax has been estimated to potentially raise $60 million for the state budget, and critics have noted that it will be imposed even if the taxpayer has lost money on crypto, because it's based on transactions. "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," said Summer Mersinger, CEO of the Blockchain Association, in a statement. - 1 - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 Anvil is a shared on-chain collateral layer built on a programmable letter of credit: reserve assets as a guarantee -no loan, no interest, keep custody & yield. Anvil is a shared on-chain collateral layer built on a programmable letter of credit: reserve assets as a guarantee -no loan, no interest, keep custody & yield. Why it matters: Anvil is a shared on-chain collateral layer built on a programmable letter of credit: reserve assets as a guarantee -no loan, no interest, keep custody & yield.