Digital Chamber sues Illinois over 0.2% crypto transaction tax
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The Digital Chamber, a blockchain advocacy group, filed a lawsuit against Illinois on Wednesday challenging a new law that imposes a 0.2% tax on digital asset transactions. The suit argues the tax violates the Commerce Clause and burdens interstate digital commerce.
The Lawsuit
The Digital Chamber filed the complaint in the U.S. District Court for the Northern District of Illinois on July 22. The group seeks an injunction to block the tax, which is set to take effect on January 1, 2027. The lawsuit claims the tax discriminates against digital assets and exceeds state authority under the U.S. Constitution.
Illinois Law
Illinois Governor J.B. Pritzker signed the tax into law in June 2026 as part of a broader budget package. The 0.2% tax applies to the gross receipts of digital asset transactions, including purchases, sales, and exchanges. The state estimates the tax will generate $50 million annually for infrastructure projects.
Industry Response
The Digital Chamber argues the tax will stifle innovation and drive crypto businesses out of Illinois. Other states, including New York and California, have considered similar taxes but have not enacted them. The lawsuit has drawn support from several crypto firms, including Coinbase and Circle.
What's Next
A hearing on the injunction request is expected within 60 days. It remains unclear whether the court will block the tax before its January 2027 effective date.
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Digital Chamber sues Illinois over 0.2% crypto transaction tax
