Digital asset trade groups pursue legal action against Illinois crypto tax law

Illinois just became the testing ground for a question no other state has dared to answer: can you single out crypto businesses with a dedicated tax and expect the courts to go along with it? Two separate lawsuits are now challenging the state’s Digital Asset Tax Act, a 0.2% levy on digital asset business activities that Governor JB Pritzker signed into law on June 16, 2026. The Blockchain Association and the Crypto Council for Innovation filed their suit on August 21, while the Digital Chamber launched its own challenge in late July. Both cases landed in Sangamon County Circuit Court, and the plaintiffs aren’t just asking for a review. They want the whole thing stopped before it takes effect on January 1, 2027. What the tax actually does The Digital Asset Tax Act targets a specific slice of the financial ecosystem. It applies a 0.2% tax on digital asset business activities, which covers transactions, transfers, and custody services provided by brokers. The threshold for getting caught in its net: more than $100,000 in gross receipts connected to Illinois from digital asset activities. Illinois is the first state to impose this kind of targeted tax on crypto business operations. Th...