Digital Chamber Sues Illinois Over Digital Asset Tax, Calls It Discriminatory
Summary
- The US Digital Chamber has filed a lawsuit to block enforcement of Illinois' Digital Asset Tax Act.
- The law imposes a 0.2% tax on certain digital asset business activities and is set to take effect on Jan. 1, 2027.
- The Digital Chamber argues the law is unconstitutional because it taxes blockchain-based transactions differently from similar transactions in traditional finance (TradFi), and asked the court to block the tax measure.
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The Digital Chamber has sued to block enforcement of Illinois' Digital Asset Tax Act.
Eleanor Terrett, host of Crypto In America, reported on July 21 that the Digital Chamber is the first trade association to challenge what it described as the first state-level tax law in the US targeting digital-asset business activity.
The law imposes a 0.2% tax on certain digital-asset business activities and is set to take effect on Jan. 1, 2027.
In its complaint, the Digital Chamber argues the law is unconstitutional because it taxes blockchain-based transactions differently from similar transactions conducted through traditional finance, or TradFi. The group asked the court to block the tax measure before the law takes effect.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.