Digital Chamber Sues Illinois to Block 0.2% Crypto Tax

Illinois Governor JB Pritzker signed the Digital Asset Tax Act on June 16, 2026, as part of the state’s fiscal 2027 budget. The first-of-its-kind levy taxes digital asset business activity for Illinois customers at 0.2% of the asset’s value, covering exchanges, transfers and custody. Because the charge is based on transaction value rather than profit, industry groups say it can apply even when customers record no gain or incur a loss, potentially raising costs and pushing crypto businesses out of the state.

The Digital Chamber filed a 32-page complaint on July 21 seeking to have the law declared void and unenforceable. The tax is due to take effect on Jan. 1, 2027, and must be collected by exchanges, custodians and brokers with an Illinois presence or at least $100,000 in Illinois-sourced gross receipts over the prior 12 months. The group argues the measure violates the U.S. and Illinois constitutions and is preempted by the federal Internet Tax Freedom Act, which bars discriminatory taxes on electronic commerce.