Crypto lobby group TDC sues Illinois to block digital asset tax
The Digital Chamber says the levy would unlawfully single out digital asset transactions and asks a federal judge to block enforcement.
- On Tuesday, The Digital Chamber filed a lawsuit in Sangamon County, Illinois, seeking to block the Digital Asset Tax Act before it takes effect on Jan. 1, 2027.
- Governor JB Pritzker signed the $55.9 billion fiscal 2027 budget into law in June, which included the 0.2% tax provision; state budget documents estimated the measure could generate roughly $60 million in annual revenue.
- TDC CEO Cody Carbone called the tax "void and unenforceable," contending it violates the U.S. Constitution and the Internet Tax Freedom Act by targeting blockchain-based commerce unfairly.
- According to tax advisory firm BDO, the law requires brokers to register with the Illinois Department of Revenue and submit monthly reports, applying to entities with at least $100,000 in annual receipts.
- Commodity Futures Trading Commission Chair Michael Selig criticized the measure, stating Illinois "slammed the brakes on technological progress," warning that differential taxation could disadvantage businesses against national policy.
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Capitol Fa - Your Illinois News Radar » Cryptocurrency trade group sues to block Illinois’ Digital Asset TaxCapitolFax.com
* Forbes last month… Illinois is set to implement a groundbreaking 0.2% transactional tax on cryptocurrency transfers, effective January 1, 2027, under its new Digital Asset Tax Act (SB3019). Unlike traditional capital gains taxes, this levy applies every time crypto is moved, irrespective of profit, even between a user’s own accounts or to a self-custodial wallet. [...]
Crypto lobby sues Illinois to block new digital asset tax – Crain’s
“Taxes should be carefully considered, not only for the revenue they produce but for the fairness of those being taxed,” Digital Chamber CEO Cody Carbone said in a statement. “That was not the case here, as the provision slipped into legislation the night before the bill’s final consideration.”
Chicago Tribune
Lodinews.comDigital asset industry group sues to block Illinois’ first-in-the-nation cryptocurrency tax
Democrats approved the cryptocurrency tax with an expectation it would garner $60 million to help balance the state budget. The tax is set to begin January 1, 2027.
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…
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