Everyday crypto users face monthly tax bills on total asset value if covered brokers fail to collect under new Illinois rules

Blockchain Association and CCI seek injunctions, but the filing itself did not suspend the 0.2% levy.

• Illinois's new 0.2% digital asset tax, set to begin January 1, 2027, is facing legal challenges from the Blockchain Association and the Crypto Council for Innovation.
• The tax is based on the total value of customer digital asset activity, not gains or fees, and requires brokers to collect it.
• The lawsuit seeks to invalidate the tax, citing federal preemption, commerce clause violations, and due process concerns, but the filing itself does not suspend the law.

Topics: Legal regulatory, Jurisdictions, Compliance, Securities law classification, Cross jurisdictional policy, Aml antimoneylaundering

Tags: #illinoisdigitalassettax #blockchainassociation #cryptocouncilforinnovation #injunction #02levy #digitalassettaxact #brokercompliance #taxation #regulatorychallenge

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Illinois Targets Bitcoin Transactions With New Tax Critics Call ‘Punitive’ - Crypto Economy

Illinois Governor J.B. Pritzker signed the Digital Asset Tax Act into law, setting a 0.2% levy on crypto operations for 2027.

• Illinois has enacted the Digital Asset Tax Act, imposing a 0.2% tax on cryptocurrency transactions starting January 1, 2027.
• The tax applies to activities within the state or by residents, with exchanges acting as withholding agents.
• Industry groups criticize the law as 'punitive' and 'severe,' contrasting it with federal proposals that aim for exemptions.

Topics: Jurisdictions, Legal regulatory, Political endorsements opposition, Established hubs, Securities law classification, Pro innovation policy, Political opposition bans

Tags: #illinois #bitcointax #digitalassettaxact #cryptocurrency #jbpritzker #02levy #cryptooperations #regulatorypressure #taxframework

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