The Digital Chamber, a crypto industry advocacy group, has sued the State of Illinois over its recently passed Digital Asset Tax Act. The lawsuit, filed in Sangamon County, asks a court to halt the law before it goes into effect on Jan. 1, 2027. This marks the first time a crypto coalition has taken such legal action against a state.
The legal challenge
The Digital Asset Tax Act was passed by Illinois lawmakers earlier this year. The Digital Chamber's lawsuit challenges the law directly, arguing it should be stopped. The group requested an injunction to prevent the state from enforcing the tax. The case is now before a judge in Sangamon County.
First-of-its-kind lawsuit
No crypto industry group has ever sued a state over a digital asset tax law before. The Digital Chamber's move signals a new willingness to fight state-level regulations in court. The outcome could influence how other states approach taxing crypto transactions.
What the lawsuit seeks
The Digital Chamber wants the court to declare the Digital Asset Tax Act invalid and block its enforcement. The law is set to take effect at the start of 2027, giving the court several months to rule. A hearing date has not yet been set.
Timeline to Jan. 1
With the law still months away from taking effect, both sides have time to prepare their arguments. The Digital Chamber is pushing for a quick decision on the injunction. If the court grants it, Illinois will have to pause the tax while the case proceeds.
