Digital Chamber sues Illinois over crypto tax
Analysis based on 6 articles · First reported Jul 21, 2026 · Last updated Jul 23, 2026
The lawsuit introduces regulatory uncertainty for cryptocurrency businesses operating in United States — Illinois and may deter investment in the state's digital asset sector. A ruling against the tax could encourage other states to reconsider similar proposals, while a ruling upholding it might lead to a patchwork of state-level crypto taxes.
Digital Chamber, a cryptocurrency advocacy group, filed a lawsuit in Sangamon County, United States — Illinois, to block the state's Digital Asset Tax Act (DATA) before its scheduled January 1, 2027, enforcement. The law, signed by Governor JB Pritzker in June 2026, imposes a 0.2% tax on the gross value of digital asset transactions, transfers, and custody services for businesses with at least $100,000 in annual United States — Illinois receipts. The lawsuit argues the tax discriminates against blockchain-based transactions, violating the U.S. Constitution's Commerce Clause, due process, and the federal Internet Tax Freedom Act. The complaint names Revenue Director David Harris and Attorney General Kwame Raoul as defendants. Digital Chamber seeks temporary and permanent injunctions to stop enforcement. Critics, including Andreessen Horowitz's Miles Jennings, have called the law one of the most anti-crypto in the U.S. The case could set a precedent for state-level crypto taxation.
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