Overview
- The Digital Chamber filed suit late July seeking temporary, preliminary and permanent injunctions to stop Illinois’ Digital Asset Tax Act from taking effect on Jan. 1, 2027, with filings reported in Sangamon County even as some coverage said the complaint asked a federal judge to block enforcement.
- The law, signed into the FY2027 budget, creates a 0.2% levy on the gross value of covered digital‑asset exchanges, transfers and storage and assigns collection duties to brokers rather than taxing profits or gains.
- The complaint argues the statute singles out blockchain‑recorded transactions and violates the Illinois Constitution, the U.S. Constitution’s Commerce Clause and the federal Internet Tax Freedom Act.
- Industry and advisers say the measure leaves open key implementation questions about how brokers must value volatile assets, determine which customer activity is Illinois‑sourced and whether ordinary wallet or custody moves trigger taxable events.
- The case is backed by a coalition of more than 250 firms and has drawn public criticism from federal regulators, and its outcome could shape other states’ tax plans and the broader federal debate over crypto taxation.