The Crypto Council for Innovation and Blockchain Association have launched another legal challenge against Illinois over its new 0.2% cryptocurrency tax.
The two industry groups are taking the state to court over a tax that applies to companies handling or storing crypto for customers in Illinois.
In a lawsuit filed Friday, CCI and the Blockchain Association argued that the levy conflicts with the U.S. Constitution, Illinois Constitution and Internet Tax Freedom Act.
Their case follows a lawsuit filed last month by the Digital Chamber, which also opposes Illinois’ crypto tax.
Ji Kim, head of CCI, said the measure unfairly singles out digital assets because of the technology behind them rather than the transactions themselves.
The complaint was filed in Sangamon County and seeks to block the tax, which applies to Illinois-based companies and firms serving state residents that generate more than $100,000 in total receipts.
Illinois could collect as much as $60 million from the tax, although critics say companies may still have to pay even when their crypto operations lose money because the levy is based on transactions.
Blockchain Association CEO Summer Mersinger warned that the tax could disadvantage digital commerce, create uncertainty and further divide the growing U.S. crypto market.
