Digital Chamber Sues Illinois Over 0.2% Crypto Tax Set to Take Effect January 2027

The Digital Chamber filed suit in Sangamon County on July 21 against Illinois' newly enacted Digital Asset Tax Act, which imposes a 0.2% tax on digital asset transfers, exchanges, and storage. The tax takes effect January 1, 2027, and is projected to raise approximately $60 million annually. Illinois is the first U.S. state to enact a tax specifically targeting crypto transactions.

The Digital Chamber argues the law violates the Illinois Constitution's uniformity and due process clauses, as well as the U.S. Constitution's Commerce Clause by discriminating against blockchain infrastructure while leaving functionally identical traditional finance transactions untouched. The tax applies to firms based in Illinois or serving Illinois customers with gross receipts of at least $100,000 yearly, and critically, is levied on gross transaction value rather than net gains, meaning entities could owe tax on unprofitable trades or losses.