Crypto lobby group Digital Chamber sues Illinois to block digital asset tax
CoinDesk 2026-07-21 22:08:10
Context: The Digital Chamber, a crypto lobbying organization, has filed a lawsuit against the state of Illinois to block the Digital Asset Tax Act, which is set to take effect in January. The tax applies to firms based in or operating in Illinois that provide digital asset services in the state, and the lobbying group alleges that it violates both the U.S. and state constitutions. The lawsuit seeks to prevent the Illinois state government from enforcing the tax.
Key Facts
- The Digital Asset Tax Act imposes a 0.2% tax on entities based in Illinois or providing services with gross receipts of over $100,000, and it takes effect in January.
- The tax applies to any firm based in or operating in Illinois that provides digital asset services in the state, according to the Digital Asset Tax Act.
- The Digital Chamber's lawsuit alleges that the tax violates the Illinois state constitution's uniformity and due process clauses, the Commerce Clause of the U.S. Constitution, and the Internet Tax Freedom Act.
- The Internet Tax Freedom Act prohibits discriminatory state and local taxation of electronic commerce, and the lawsuit argues that the Digital Asset Tax Act is discriminatory because it distinguishes between traditional financial infrastructure and blockchain infrastructure.
- The lawsuit, filed on behalf of the Digital Chamber's members, asks a federal judge to rule that the crypto tax violates state and federal constitutions and to block the state of Illinois from enforcing the law.