The crypto advocacy group TDC filed a lawsuit against the state of Illinois this week, aiming to block a digital asset tax that the group says is riddled with conflicting language. The suit, lodged in state court, challenges a tax proposal that appears to set two different rates — 0% and 0.2% — for the same transactions. TDC argues the ambiguity makes the tax unworkable and potentially unconstitutional.
The tax that can't make up its mind
At the center of the dispute is a digital asset tax bill passed by the Illinois legislature. The text reportedly includes language that would impose a 0% tax on certain crypto transactions, while another section appears to levy a 0.2% tax on the same activity. TDC's lawsuit contends that the contradiction leaves businesses and individuals unable to comply. The group is asking the court to block enforcement until the state clarifies which rate applies — or scraps the tax entirely.
An unverified XRP projection
The lawsuit also references a projection that XRP could reach $3 by July 2026 if the 0.2% rate were implemented. That claim is not independently verified and appears to be part of TDC's argument that the tax would distort market behavior. The group did not provide a source for the projection, and the state has not commented on its accuracy. The inclusion of the price target is unusual for a legal filing, but TDC appears to be using it to illustrate what it sees as arbitrary rate-setting.
What happens next
The case has been assigned to a judge in Cook County, though no hearing date has been set. Illinois's Department of Revenue has not yet filed a response. TDC is seeking an injunction that would pause the tax while the court reviews the language. The outcome could set a precedent for how states handle digital asset taxation — especially when legislative drafting leaves room for confusion.
