Crypto lobby sues Illinois, says blockchain tax violates Constitution
The Digital Chamber has challenged Illinois new 0.2% digital asset transaction tax in court, arguing that the law unfairly targets blockchain-based commerce and violates constitutional protections. According to a complaint filed Tuesday in an Illinois circuit court, crypto trade association The Digital Chamber (TDC) is seeking to block the states Digital Asset Tax Act before it takes effect on Jan. 1, 2027. The organization argues that Illinois has singled out digital assets by imposing a transaction tax based on the technology used to record and transfer ownership rather than on the underlying economic activity. ????1/ Today we filed suit in Sangamon County, IL, to stop the Digital Asset Tax Act. No one should be taxed differently because of how ownership of digital assets is recorded or transferred. pic.twitter.com/pv3J3FPybM — The Digital Chamber (@DigitalChamber) July 21, 2026 The lawsuit asks the court to declare the law “void and unenforceable,” contending that it violates the U.S. Constitution and should not be allowed to move forward. Trade group challenges technology-specific tax In a statement accompanying the filing, The Digital Chamber CEO Cody Carbone said the organization is not asking for favorable treatment but for equal treatment under the law. Carbone said taxes should be designed with fairness in mind alongside revenue