Digital Chamber Sues Illinois Over Expanded Crypto Tax Law

The Digital Chamber has filed a lawsuit in Sangamon County, Illinois, to block the Digital Asset Tax Act. The legislation was enacted in June and applies a 0.2% tax on various digital assets, including stablecoins and decentralized finance (DeFi) transactions.

The law targets a range of digital assets, expanding its scope beyond traditional cryptocurrencies like Bitcoin and Ethereum. Stablecoins, which are pegged to the value of fiat currencies, will now be subject to this tax.

Kalshi, an online prediction market platform, has also filed a federal lawsuit against Illinois over the new state tax law. The company argues that the legislation unfairly targets sports prediction markets like its own.