The state government of Illinois and major industry groups such as the Blockchain Association, the Crypto Council for Innovation, and others have filed a lawsuit over the proposed Digital Asset Tax Act. They contend that the law is unconstitutional even though it has not yet taken effect or been enforced; they therefore seek an immediate hearing from the court to determine its constitutionality.
The complaint was filed on November 4 2026 together with a provisional petition for judgment, and a schedule was set to hold a hearing in late January 22 2027 and again in February. The industry groups demanded that the case be decided by March 1 2027; the state government has not yet responded. Approval of this request would allow the parties to pursue their claims.
The filing is made despite the fact that the Digital Asset Tax Act has not yet taken effect, and it seeks to pre‑emptively challenge the act. Illinois has indicated that it will not enforce or enforce the law until July 1 2027. The industry groups argue that the law treats digital assets differently from other property and violates existing statutes. They also argue that companies could face criminal penalties under the law. No ruling by the court has yet been issued.
If the court grants the request, the parties will proceed with hearings in February 2027, and the industry groups will maintain their demand for a decision by March 1 2027. The outcome of this hearing will determine how the Digital Asset Tax Act will ultimately be interpreted and enforced.