Illinois recently introduced a 0.2% tax on all cryptocurrency transactions, set to take effect next year.
By Nikhilesh De|Edited by Jesse HamiltonUpdated Jul 21, 2026, 10:31 p.m. Published Jul 21, 2026, 10:08 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Chicago, Illinois (Pedro Lastra/Unsplash)SummaryShow- The Digital Chamber has initiated legal action to prevent the implementation of Illinois' Digital Asset Tax Act.
- This tax is applicable to any company operating in Illinois that offers digital asset services and has gross receipts exceeding $100,000.
A cryptocurrency advocacy organization has filed a lawsuit against the state of Illinois concerning a tax measure that was added to the state budget last month.
The Digital Chamber claims that the Digital Asset Tax Act contravenes both state and federal constitutions and is overridden by a federal tax statute. The lawsuit, lodged on Tuesday, requests that a federal judge intervene to stop the enforcement of this tax by the state government.
According to the lawsuit, the tax infringes upon the Illinois constitution's provisions on uniformity and due process, as well as the U.S. Constitution's Commerce Clause and the Internet Tax Freedom Act, by specifically targeting digital asset transactions.
The Digital Asset Tax Act was quickly passed last month, just before the conclusion of the Illinois state legislative session. The new 0.2% tax applies to businesses based in Illinois or those providing services that generate gross receipts over $100,000, and it will take effect in January.
The lawsuit asserts that the Internet Tax Freedom Act establishes a guideline that prohibits "discriminatory state and local taxation" on electronic commerce.
"The Act makes no distinctions between gains and losses, profitable and unprofitable transactions, or between ownership transfers and non-ownership transfers,” the lawsuit states. “It solely differentiates between traditional financial systems and blockchain technology.”
Federal law distinguishes between what an asset signifies "from the infrastructure used to record them," the lawsuit contends, noting that no other legal framework differentiates based on the technology that records ownership.
Representing TDC's members, the lawsuit requests that a state judge declare the crypto tax unconstitutional and prevent Illinois from enacting it, as well as award TDC any legal fees incurred.
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TRON Network - Q2 2026
TRON Network - Q2 2026
In Q2; TRON's stablecoin dominance rose to 28.7%, USDT supply on TRON hit $89B ATH, $89M in protocol fees (2nd to Hyperliquid), TRX +3%, and deepening institutional & agentic reach.
By CoinDesk Research9 hours agoCommissioned byTronIn Q2; TRON's stablecoin dominance rose to 28.7%, USDT supply on TRON hit $89B ATH, $89M in protocol fees (2nd to Hyperliquid), TRX +3%, and deepening institutional & agentic reach.
Why it matters:
In Q2; TRON's stablecoin dominance rose to 28.7%, USDT supply on TRON hit $89B ATH, $89M in protocol fees (2nd to Hyperliquid), TRX +3%, and deepening institutional & agentic reach.
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