The Crypto Council for Innovation (CCI) and Blockchain Association (BA) filed a lawsuit against Illinois officials regarding the state’s 0.2% tax on cryptocurrency, expected to be enforced starting in January 2027. 

In a lawsuit filed Friday in the Circuit Court of the Seventh Judicial Circuit for Sangamon County, lawyers for the two crypto advocacy groups challenged Illinois’ digital asset tax on the grounds it violated the US Constitution, the state’s constitution, federal and state due process laws and the federal Internet Tax Freedom Act. Illinois Governor JB Pritzker signed the measure into law as a “privilege tax” in June as part of the state’s fiscal year 2027 budget, requiring crypto users to be taxed as applied to transaction volume rather than income.

On the due process claim, CCI and BA argued that the tax was “unconstitutionally vague” by placing the burden on residents and brokers “under the threat of serious civil and criminal penalties” to determine what and how such assets were taxed. Notably, the crypto organizations’ arguments under the US Constitution were based on alleged violations of the Commerce Clause covering interstate commerce, claiming that the state tax “creat[ed] the specter of duplicative taxation.”

“States have an important role to play in fostering innovation, but that authority has constitutional limits,” said Summer Mersinger, CEO of the Blockchain Association and a former commissioner at the US Commodity Futures Trading Commission. “Illinois cannot impose a novel tax regime that discriminates against digital commerce, creates uncertainty for consumers and businesses, and threatens to fragment a rapidly growing national market.”

Source: Blockchain Association

The CCI and BA lawsuit followed a similar one filed by the Digital Chamber in July in which that organization argued that the Illinois tax “discriminates against people who transact in digital assets.“ The suits represented the influence of digital asset groups in opposition to laws passed by US state officials during an election year when crypto policy, laws and regulation could influence voters.

Related: Nigeria sets crypto tax collection rules for digital asset platforms

Illinois also targeting prediction markets

Opposition to the crypto tax came amid prediction market platform Kalshi’s lawsuit against Illinois officials over a law that went into effect on July 1. According to the company, the legislation “expressly bans sports event contracts” in violation of federal law by requiring state licensing.

Separately, Pritzker signed an executive order banning state employees from betting on the platforms in April in an effort to ”prevent insider trading amid the rapid growth of online prediction markets and event-based gambling contracts.”

Magazine: Crypto industry ties were a liability in Illinois primary

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Two U.S. crypto trade groups have sued three Illinois officials to stop a 0.2% digital asset tax from taking effect on Jan. 1, 2027.

Illinois crypto tax faces six legal claims

The 39-page complaint, filed by the Blockchain Association and Crypto Council for Innovation in Sangamon County Circuit Court, seeks declaratory and injunctive relief against the Digital Asset Tax Act.

Filed against Illinois Department of Revenue Director David Harris, Attorney General Kwame Raoul, and Sangamon County State’s Attorney John Milhiser, the case challenges the officials responsible for implementing, collecting, and enforcing the tax.

According to the filing, Illinois would impose the levy on the full value of a customer’s digital assets whenever a covered broker exchanges, transfers, or stores them. The groups said a customer could owe the tax even without selling an asset, transferring ownership, or earning a profit.

The complaint sets out six counts under federal and state law. CCI and the Blockchain Association allege that the measure violates the federal Internet Tax Freedom Act, the Commerce Clause, and due process protections under the U.S. Constitution.

At the state level, the groups claim the tax violates Illinois’ Uniformity Clause, unlawfully delegates tax policy to an administrative agency, and fails to meet a state constitutional rule requiring bills to be read by title on three separate days in each legislative chamber.

Calling the measure “unconstitutionally vague,” the plaintiffs said brokers and Illinois customers cannot determine with enough certainty which activities fall under the law or who must collect and remit the tax. The groups argued that the uncertainty carries serious consequences because statutory violations could expose a broker to a Class 3 felony.

The filing also claims that some association members are already spending money on outside legal and tax advice and changing their systems to calculate, collect, and record the levy. According to the plaintiffs, withholding court review would leave affected firms with a choice between limiting service to Illinois customers and risking criminal liability.

Groups say interstate transactions could be taxed twice

Under its Commerce Clause claim, the complaint argues that Illinois has not fairly limited the tax to economic activity within the state. The law allows officials to treat a transaction as occurring in Illinois by relying on details such as a customer’s address, account records, or IP address.

The groups said another state could use its own location test for the same transaction, raising the possibility that two jurisdictions would tax one transfer. A customer with an Illinois address who completes an online transaction while visiting another state could therefore create competing tax claims if both states adopted similar rules, according to the filing.

Illinois also lacks a credit for comparable tax paid to another state, the complaint said. On that basis, the plaintiffs allege that the measure could place interstate digital asset activity at a disadvantage compared with transactions conducted entirely within one state.

Summer Mersinger, CEO of the Blockchain Association and a former Commodity Futures Trading Commission member, said states can support new industries but must remain within constitutional limits.

“Illinois cannot impose a novel tax regime that discriminates against digital commerce, creates uncertainty for consumers and businesses, and threatens to fragment a rapidly growing national market.”

The Internet Tax Freedom Act claim focuses on the tax treatment of online commerce. According to the complaint, the federal law prevents states from imposing discriminatory taxes on electronic transactions when equivalent offline activity receives more favorable treatment.

Illinois does not impose the same levy on the exchange, transfer, or storage of cash, stocks, bonds, or precious metals, the plaintiffs said. The filing gives the example of an Illinois resident who can store gold in a safe deposit box without paying the new tax but would face the 0.2% charge when using a service to hold Bitcoin.

Brokers and Illinois customers could both owe duties

As crypto.news reported in June, Governor JB Pritzker signed the tax into law as part of Illinois’ $55.9 billion fiscal 2027 budget. State budget documents estimated that the levy could generate about $60 million annually.

The law places a 0.2% “privilege tax” on the value of digital assets tied to covered business activity received by an Illinois customer. Covered services include exchanging, transferring, and storing digital assets through a broker.

According to tax advisory firm BDO USA, certain out-of-state brokers can fall under the law when they receive at least $100,000 from Illinois customers during a 12-month period. Location tests can draw on billing details, customer records, mailing addresses, and IP information.

Covered brokers must register with the Illinois Department of Revenue, collect the tax from customers as a separate charge, keep transaction records, and submit monthly filings. When a broker does not collect the levy, the statute directs the customer to assess the amount and pay the department by the 20th day of the following month.

The latest complaint says different sections of the law create uncertainty over which firms must follow each requirement. While one part places collection duties on brokers with an Illinois place of business, another appears to require the broker completing a sale to collect the levy without applying the same revenue threshold, according to the plaintiffs.

CCI and the Blockchain Association also challenged how lawmakers passed the measure. Their filing said Senate Bill 3019 began in January as a two-page proposal concerning loans for agricultural property before lawmakers replaced its contents on the final day of the legislative session.

Two amendments expanded the legislation into a 1,624-page package covering subjects ranging from vehicle weight rules to sports wagering. The complaint said the digital asset provisions took up fewer than 20 pages and contained no legislative findings explaining the tax.

According to the groups, House and Senate committees gave the public about an hour or less of notice before hearings, while both chambers passed the rewritten bill within 24 hours. Pritzker signed it on June 16 as Public Act 104-468.

A second lawsuit targets the same 0.2% levy

The case is the second industry challenge filed against the Illinois tax. In July, the Digital Chamber filed its own lawsuit in the same state court, arguing that Illinois had taxed digital asset services differently from economically similar transactions involving traditional assets.

The Digital Chamber asked the court to declare the law void and unenforceable. Its complaint also alleged violations of federal and state constitutional protections and challenged the state’s decision to base tax treatment on the technology used to record or move an asset.

Public objections began before the budget became law. The Crypto Council for Innovation asked Pritzker to remove the digital asset provisions through a line-item veto, while the Digital Chamber and Illinois Blockchain Association said lawmakers gave affected businesses no meaningful notice.

Strategy co-founder Michael Saylor later called the law a “Big Mistake.” Miles Jennings, general counsel and head of policy at a16z Crypto, said in June that no comparable state financial transaction tax applied to stocks, bonds, or derivatives.

Illinois has also faced a separate court fight over prediction markets. Kalshi challenged a state law that treats sports event contracts as wagers and requires operators to obtain state licenses.

In its federal complaint, Kalshi argued that the Commodity Exchange Act gives the CFTC exclusive authority over contracts listed by federally regulated markets. The company said complying with the Illinois licensing system would create additional expenses, while blocking state residents could require new geofencing systems.

Pritzker had earlier signed Executive Order 2026-04 restricting state employee trading on prediction platforms when nonpublic information obtained through official duties could be used to make a profit or avoid a loss.

Tom Lee’s Bitmine Immersion Technologies continued its accumulation of Ether last week, adding to its holdings as the cryptocurrency staged a sharp breakout following a prolonged downturn.

The company disclosed Monday that it purchased 32,447 Ether (ETH) last week, bringing its total holdings to 5,847,611 ETH, or roughly 4.8% of Ethereum’s circulating supply. Bitmine has acquired ETH every week since launching its Ethereum treasury strategy on June 30, 2025, extending its buying streak to roughly 14 months.

The company’s NYSE-traded shares were up about 8.7% to open the week, poised to extend their almost 28% gains over the past six months.

Bitmine is now 97% of the way toward its stated goal of owning 5% of the ETH supply. It has also staked 5.07 million ETH, representing about 87% of its holdings, and reported combined crypto, cash, securities and other investments of $14.9 billion.

The latest purchase coincided with a sharp rally across Ether and the broader cryptocurrency market. ETH has outperformed Bitcoin since last Wednesday, when the US Treasury announced plans to double its monthly purchases of certain longer-dated US Treasurys to $4 billion from $2 billion beginning next month.

Ether has gained more than 32% since the announcement, breaking above $2,500 for the first time since January, according to CoinMarketCap data.

Related: Crypto Biz: Treasury’s ‘Not-QE’ playbook sends Bitcoin higher

Ether price rebound cuts Bitmine’s paper losses

Bitmine’s aggressive Ether purchases during the market downturn left the company sitting on steep unrealized losses as ETH prices continued to fall. However, the cryptocurrency’s recent recovery has significantly narrowed that shortfall.

Bitmine has invested more than $19.5 billion in its Ether treasury, with its paper losses falling to below $5 billion from more than $8.4 billion roughly a week ago, according to DropsTab data.

Bitmine’s unrealized losses on its ETH holdings have narrowed amid the market recovery. Source: DropsTab

The sharp swings highlight the challenges of managing digital asset treasuries, whose valuations can fluctuate significantly with changing market conditions.

Related: Ethereum Foundation warns some tools may break with Glamsterdam upgrade

Bitmine Immersion Technologies, an NYSE-listed company run by Tom Lee, disclosed that it continued building its Ether treasury last week—adding 32,447 ETH as the token rebounded sharply after an extended decline. The purchase lifts Bitmine’s total Ether holdings to 5,847,611 ETH, according to the company’s Monday update.

The latest buying pace keeps Bitmine on a nearly continuous accumulation schedule tied to its stated Ethereum treasury strategy, launched on June 30, 2025. With the firm now staking most of its position, the disclosure also offers a snapshot of how large spot treasuries can swing in value when the market turns.

Key takeaways

• Bitmine bought 32,447 ETH last week, bringing total holdings to 5,847,611 ETH—about 4.8% of Ethereum’s circulating supply.
• The company says it has acquired ETH every week since June 30, 2025, extending its buying streak to roughly 14 months.
• Bitmine is about 97% of the way toward its goal of owning 5% of the ETH supply.
• Of its Ether holdings, 5.07 million ETH is staked—around 87% of what Bitmine owns.
• Earlier losses tied to ETH’s drawdown have narrowed, with DropsTab data showing unrealized paper losses falling below $5 billion from more than $8.4 billion about a week earlier.

Bitmine keeps stacking Ether as the rebound gathers pace

Bitmine’s Monday disclosure confirms that last week’s ETH purchase was not isolated—it continued a weekly accumulation pattern that began when the company launched its Ethereum treasury strategy on June 30, 2025. With Ether prices stabilizing and then rallying, the firm’s latest tranche arrives at a time when its portfolio valuation is improving relative to the prior downturn.

According to the report, Bitmine now holds 5,847,611 ETH, which equates to roughly 4.8% of Ethereum’s circulating supply. The company also reiterated that it is nearing its target: it is reported to be 97% toward owning 5% of the ETH supply.

Bitmine’s NYSE-traded shares opened the week up about 8.7%, following a stretch that has already put gains at nearly 28% over the past six months. While share moves are not solely determined by crypto prices, the timing underscores how investors can respond to disclosures about on-chain treasury activity during volatile market phases.

How staking and treasury size shape the risk profile

The company’s Ether position is not only large—it is also largely staked. Bitmine reported staking 5.07 million ETH, representing about 87% of its holdings. Staking doesn’t eliminate price risk, but it changes how a treasury can pursue yield while remaining exposed to Ethereum’s market value.

Bitmine also provided a broader balance sheet snapshot, reporting combined crypto, cash, securities, and other investments of $14.9 billion. For readers tracking treasury strategies, this matters because valuation gaps in crypto holdings can be cushioned or amplified by how much capital the company holds outside of digital assets and by whether those assets are liquid versus locked or staked.

In practice, a treasury that keeps buying through downturns can end up with substantial unrealized losses during bearish periods. When markets rebound—especially sharply—those losses can narrow quickly, improving net asset value on paper even if the underlying strategy and risk exposures have not changed.

Why Ether’s rally mattered to Bitmine’s paper losses

Bitmine’s accumulation during the downturn left it facing steep unrealized losses when ETH prices fell. The recent recovery, however, has materially reduced that gap. DropsTab data cited in the disclosure indicates Bitmine has invested more than $19.5 billion in its Ether treasury, while unrealized losses have come down to below $5 billion from more than $8.4 billion roughly a week earlier.

The reported swing highlights a key operational challenge for crypto treasuries: digital asset valuations can change rapidly, sometimes in both directions, forcing investors to think in terms of marked-to-market exposure rather than only realized gains or losses. For companies building long-term crypto reserves, that volatility becomes part of the investment story—even when the buying cadence remains steady.

Bitmine’s latest purchase also aligns with a broader market move. Ether outperformed Bitcoin starting last Wednesday, when the US Treasury announced plans to double its monthly purchases of certain longer-dated US Treasurys to $4 billion from $2 billion beginning next month, as reported by Cointelegraph’s markets coverage.

CoinMarketCap data referenced in the disclosure shows Ether gained more than 32% since that announcement, breaking above $2,500 for the first time since January. For a treasury operator like Bitmine, that type of price action can quickly shift the narrative from “drawdown management” to “valuation recovery,” even if the company continues to execute the same acquisition strategy.

Treasury accumulation in context: what investors should watch next

Bitmine is approaching its 5% ETH supply target while maintaining a heavy staking allocation. That combination—sustained spot accumulation plus high staking participation—can influence how markets interpret the company’s longer-term commitment to Ethereum.

Still, several questions remain important for investors monitoring this strategy. How consistently Bitmine will be able to purchase ETH week after week if market volatility returns is one. Another is how much of its Ether is held in a form that can be deployed versus locked in staking. Finally, broader macro developments—such as how US Treasury policy and liquidity conditions continue to affect risk assets—could determine whether the current ETH rebound sustains or fades.

For now, the immediate watch item is whether Bitmine’s ongoing weekly purchases continue at the same pace as its unrealized loss position improves, and whether Ethereum’s momentum holds beyond the post-announcement rally.

WBT trades around $72.70 after hitting a new high, as its four-year milestone coincides with broader developments in blockchain infrastructure and digital assets.

WBT is trading around $72.7 after reaching a new all-time high, extending its gains beyond the previous $64.11 record set in December 2025. The move comes as the four-year-old token reaches another stage in its development, while the wider crypto industry continues shifting toward more established infrastructure and institutional participation.

Utility is becoming more important for exchange tokens

The role of an exchange token has changed considerably from the early days of crypto.

WhiteBIT offers users trading-related benefits, including reduced fees, while holdings can also affect referral rewards and eligibility for certain Launchpad activities. Staking and reward programs provide additional ways for users to interact with the asset.

The token also has a blockchain function. WBT is used as the native gas asset on Whitechain, connecting it directly to transactions taking place outside the exchange environment.

That broader utility is relevant as crypto platforms increasingly serve users who expect more than a place to buy and sell assets. Trading, blockchain infrastructure, token launches and rewards are increasingly being combined within connected ecosystems.

WBT is one example of that model.

Whitechain is taking a different route to scalability

The infrastructure side of the story is developing at the same time.

Whitechain is transitioning from its original standalone Layer 1 into an Ethereum Layer 2 built with the OP Stack. The network’s Sepolia testnet is already operational, while mainnet development is targeting later in 2026.

The move places Whitechain within a much larger ecosystem. Ethereum Layer 2 networks have become an established way to handle blockchain activity while settling transactions back to Ethereum.

Whitechain’s architecture remains EVM-compatible, which means developers can continue using familiar Ethereum development tools. WBT remains the native gas token after the transition.

The development is particularly relevant to WBT because it gives the token a role in network activity that does not depend solely on exchange trading.

A new phase for token supply

WBT has appreciated 28.3% over the past 12 months and was among the global top 10 cryptocurrencies by market capitalization in figures released around its fourth anniversary.

The price move is noteworthy, but it is taking place alongside several structural changes that are affecting how exchange-linked digital assets are used.

WBT’s tokenomics have also reached a transition point.

The token’s full supply has been unlocked as of 2026. Meanwhile, its burn mechanism remains active. WhiteBIT says the buyback program uses an amount corresponding to 33% of trading-fee income and 5% of income from other exchange activities, with the stated aim of reducing total supply toward 200 million WBT.

This is different from the supply dynamics during WBT’s earlier years, when scheduled unlocks were still taking place.

The combination of completed unlocks and continuing burns gives traders another variable to consider when looking at the token’s longer-term supply profile.

It also means the recent all-time high is arriving after a significant change in the mechanics governing how much WBT is circulating.

More markets are opening up

The token’s wider market presence has changed alongside its utility. WBT was listed on Kraken in March 2026 with WBT/USD and WBT/EUR markets, giving the asset additional access outside its original exchange environment.

That matters for liquidity and visibility, particularly for an exchange-linked token whose early use was closely associated with a single platform.

WBT’s fourth anniversary provides another reference point. Four years after launch, the token is trading above its previous record, has gained 28.3% over the last year and has developed uses spanning exchange services and blockchain infrastructure.

The new high does not establish where the token goes next. What it does show is that WBT is entering a different stage of its lifecycle, one in which market performance is being watched alongside token utility, supply changes and the development of the network that uses it.