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Organizations join forces to fight Illinois crypto tax, after 6-month pause
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Crypto advocacy organizations are intensifying their legal fight against Illinois’s Digital Asset Tax Act. The Crypto Council for Innovation (CCI) and Blockchain Association (BA) said they would join the Digital Chamber and others to push a court to address the merits of a lawsuit over the 0.2% tax on crypto assets. In a Tuesday filing in the Circuit Court of Sangamon County, the groups asked the court to approve an expedited schedule for summary judgment. They want a decision on the tax’s lawfulness as quickly as possible.
Illinois officials earlier this month agreed to delay implementation of the tax for six months, from Jan. 1 to July 1, 2027. The decision came as part of the Digital Chamber’s lawsuit. Critics claimed the digital asset tax had been “slipped into the state’s budget” without debate or public feedback. The delay provides temporary relief, but the legal challenge continues.
The Tuesday filing cites the CCI and BA lawsuit against Illinois state officials, as well as a separate suit filed by the Digital Chamber and the Illinois Blockchain Association. The organizations argued that pausing enforcement protects Illinois consumers and businesses from an “onerous and legally flawed tax” until July 1. However, they said it remains imperative that the merits are determined as soon as possible. “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.
The expedited schedule, subject to court approval, could allow a decision on the merits of the law by March. Digital Chamber CEO Cody Carbone said the organization would continue with legal proceedings “until this tax is struck down for good.” The 0.2% tax applies to digital assets and is set to take effect in 2027. Industry groups view the case as a significant test of state-level crypto taxation.
Separately, the Blockchain Association is undergoing a leadership shakeup. On Friday, Summer Mersinger is scheduled to step down as CEO as part of a leadership transition. Mersinger joined the advocacy group last year after resigning from the US Commodity Futures Trading Commission. Kristin Smith, the organization’s former CEO, will step in as interim head, though Mersinger is expected to stay on until the end of 2026.
The coordinated legal action signals growing industry resolve to challenge state crypto taxes. If the court grants the expedited schedule, a decision by March could set an important precedent. Illinois’s six-month delay until July 1, 2027, offers temporary relief but does not resolve the underlying legal questions. Other states considering similar taxes may watch the outcome closely.
The organizations emphasize that the pause alone is not enough. They argue the tax was enacted without sufficient public debate and could harm consumers and businesses. By seeking summary judgment, they hope to resolve the lawfulness of the Digital Asset Tax Act without a lengthy trial. A court ruling on the merits would provide clarity for the crypto industry in Illinois and beyond.
The court must still approve the expedited schedule. If approved, a decision on the merits could arrive by March, well before the delayed implementation date. If the tax is upheld, it would take effect on July 1, 2027. If struck down, it would mark a major victory for crypto advocacy groups. The Blockchain Association’s leadership transition adds another layer of change as the litigation proceeds.
