The Digital Chamber filed a lawsuit in Sangamon County on July 21 against the newly enacted Digital Asset Tax Act in Illinois, imposing a 0.2% tax on transfers, exchanges, and the storage of digital assets. The tax will take effect on January 1, 2027, and is projected to raise approximately $60 million per year. Illinois is the first U.S. state to enact a tax that specifically targets crypto transactions.
The Digital Chamber argues that the law violates the Uniformity and Due Process clauses of the Illinois Constitution, as well as the Commerce Clause of the U.S. Constitution, by discriminating against blockchain infrastructure while leaving functionally identical traditional financial transactions untouched. The tax applies to companies based in Illinois or serving Illinois customers with total gross receipts of at least $100,000 per year, and crucially, it is assessed on the gross value of transactions, not net profit—meaning an entity could be taxed on trades that are unprofitable or result in losses.