Two digital asset advocacy groups have filed a lawsuit against Illinois over its 0.2% tax on digital assets. The case argues the tax is unconstitutional and violates due process. It comes after the Digital Chamber filed a similar suit in July.
The legal argument
The groups say the tax breaches constitutional protections and the right to due process. The lawsuit seeks to block the tax from being applied to digital asset transfers. The tax, imposed by the state, applies to digital assets at a rate of 0.2%.
The Digital Chamber's case
The Digital Chamber brought its own legal challenge in July, targeting the same tax. That case is pending. The new lawsuit adds a second layer of legal pressure on Illinois.
The outcome of either case could shape how other states approach crypto taxes.
