The Crypto Council for Innovation (CCI) and the Blockchain Association have asked an Illinois court to stop a new state tax on digital assets before it takes effect in January 2027.

The groups filed a motion for a preliminary injunction in Sangamon County Circuit Court, continuing their legal challenge against Illinois’ Digital Asset Tax Act. They argue that the law violates federal and state protections and would force crypto businesses to spend millions of dollars preparing for rules they say remain unclear.

The law imposes a 0.2% tax on the value of digital assets involved in exchanges, transfers, or storage through a digital asset broker. Unlike conventional taxes, the levy is based on the value of the…