Digital Chamber Sues Illinois Over New Crypto Tax

The Digital Chamber filed a lawsuit against the Illinois Department of Revenue this week, asking a local court to block the state tax law before it takes effect. The trade group represents over 250 blockchain companies and argues that the new 0.2 percent levy unfairly targets digital assets simply because of how ownership is recorded.

The measure, known as the Digital Asset Tax Act, imposes a 0.2 percent fee on the exchange, transfer, or storage of customer digital assets. It also requires brokers to register with the state or face serious felony charges. Governor JB Pritzker signed the bill into law in June, sparking immediate pushback from digital asset advocates.

The legal filing raises six claims under state and federal law, pointing out that traditional financial instruments and blockchain equivalents share identical rights, yet only the digital version faces the tax. Chief Executive Officer Cody Carbone criticized the legislative process, noting that the provision was added late at night right before the final vote.

Crypto traders and firms should watch the courts closely, as the lawsuit asks for the entire act to be declared void. Lawmakers also have a separate repeal bill pending in the state legislature, meaning the future of this digital asset tax remains uncertain.