DOJ, Wall Street & DeFi Challenge Illinois’s 0.2% Crypto Tax - The Crypto Times

The Department of Justice, Wall Street firms, and DeFi platforms are challenging Illinois's new 0.2% cryptocurrency tax, which took effect this month. The coalition argues the tax exceeds state authority and conflicts with federal financial regulations.

Legal experts predict the case could reach the Supreme Court, potentially setting a precedent for how states regulate digital assets. The tax applies to all cryptocurrency transactions within Illinois, including trades on decentralized platforms.

Legal Challenge

Critics claim the tax creates an impossible compliance burden for decentralized finance platforms that operate without traditional geographic boundaries. The state defends the measure as necessary revenue for infrastructure projects.