Digital Chamber sues Illinois to block 0.2% crypto tax

The Digital Chamber filed a lawsuit Thursday against Illinois' Digital Asset Tax Act, seeking to stop the law before it takes effect on Jan. 1, 2027. The act imposes a 0.2% tax on digital asset business activities, the first state-level crypto tax in the U.S.

The Chamber's complaint argues the law unfairly singles out blockchain transactions for different treatment than traditional financial transactions. The legal challenge puts Illinois' crypto tax regime under increased scrutiny, the group said.

The lawsuit is being watched across the crypto market as a potential test case for state-level digital asset taxation. Illinois' law targets businesses handling digital assets, including exchanges and custodians, though the Chamber says it could set a precedent for other states.

The case is still in early stages. No hearing date has been set. The Digital Chamber has asked the court to block enforcement before the 2027 start date.