Digital Chamber Challenges Illinois' New Crypto Tax Law

The Digital Chamber has filed a lawsuit against the state of Illinois over its new Digital Asset Tax Act, which imposes a 0.2% tax on digital asset activity based on transaction value rather than profit.

The law, signed by Governor JB Pritzker in June and set to take effect on January 1, 2027, creates a unique situation where the tax could be larger than fees on high-value transfers.

The Digital Chamber argues that the law discriminates against blockchain activity under federal and state law, and that economically identical property should receive equal treatment regardless of the settlement system used.

The group also cites the federal Internet Tax Freedom Act, which restricts discriminatory state and local taxes on electronic commerce.