Digital Chamber Sues Illinois Over Blockchain-Specific Transaction Tax

A leading industry group, the Digital Chamber, has taken legal action against the state of Illinois over its Digital Asset Tax Act. The Act imposes a 0.2% levy on exchanges, transfers, and storage of digital assets.

The Digital Chamber argues that this tax singles out blockchain-based assets for special treatment, imposing an unfair burden compared to cash, stocks, or bonds. The group also claims the tax applies repeatedly to routine operations and reaches transactions with insufficient ties to the state through broad presumptions.

The Act treats each exchange, transfer, and storage as a separate taxable occurrence, even if it's just custody of digital assets. The Digital Chamber is seeking declaratory and injunctive relief, asserting violations of Illinois and U.S. constitutional provisions on equal protection, commerce, and federal internet tax rules.