Woofun AI reports that the Crypto Council for Innovation and the Blockchain Association have filed a new lawsuit against Illinois, challenging the state's 0.2% tax on crypto transactions and storage services. This legal action follows a similar suit filed last month by the Digital Chamber, intensifying the industry's opposition to the legislation.

The plaintiffs argue that the tax violates both the U.S. Constitution and the Illinois Constitution, as well as the Internet Tax Freedom Act. Ji Kim, head of the Crypto Council for Innovation, stated that the fee 'singles out digital assets for uniquely punitive treatment based on the underlying technology rather than the substance of the transaction itself.' He further claimed that taxing digital asset activity without an equivalent levy on traditional assets unlawfully manipulates market outcomes through the tax code.

Per Woofun AI, the lawsuit was filed in Sangamon County and targets firms with total receipts exceeding $100,000, whether based in Illinois or serving its residents. The tax is projected to generate $60 million for the state budget, yet critics note it applies even when taxpayers incur losses, as it is calculated on transaction volume rather than profit.

Summer Mersinger, CEO of the Blockchain Association, warned that the regime discriminates against digital commerce and creates uncertainty for consumers and businesses. She argued that such measures threaten to fragment a rapidly growing national market, marking a significant escalation in the conflict between state regulators and crypto advocates.