Digital Chamber Challenges Illinois Crypto Tax in Court

The Digital Chamber, an advocacy organization for cryptocurrency and blockchain, has filed a lawsuit against the State of Illinois over its new 0.2% tax on crypto transactions.

The tax, which is set to take effect in 2027, was included in the state's budget bill signed into law by Governor JB Pritzker in June.

The Digital Chamber claims that the tax is 'facially invalid' and discriminates against people who transact in digital assets, regardless of whether they realize a gain or transfer ownership.

The organization argues that no one should be taxed differently based on how their ownership is recorded or transferred, and that this tax is universally applied without consideration for the investor's circumstances.