Digital Chamber Sues Illinois Over Crypto Tax

The Digital Chamber, a crypto lobbying group, has filed a federal lawsuit in Illinois to block the Digital Asset Tax Act, which imposes a 0.2% tax on digital-asset business activities and is set to take effect in January 2027. The organization argues the law singles out blockchain transactions, violates the U.S. and Illinois constitutions and the Internet Tax Freedom Act, and was slipped into legislation last month. It seeks equal treatment of economically identical property regardless of technology. The case highlights ongoing regulatory tension over state-level crypto taxes and could influence other states’ approaches and market perceptions of crypto assets. Industry supporters include Anchorage Digital, Chainlink Labs, and ICE-backed entities, all urging a regulatory framework that supports digital assets. The tax was signed into law by Governor JB Pritzker as part of Illinois’ FY2027 budget, with enforcement expected to begin in January 2027.