Three digital asset industry groups — the Blockchain Association, Crypto Council for Innovation, and Digital Chamber — have filed two separate lawsuits in Sangamon County Circuit Court challenging Illinois’ Digital Asset Tax Act. The law, signed on June 16, 2026, imposes a 0.2% tax on digital asset business activities for any business exceeding $100,000 in gross receipts connected to Illinois. The plaintiffs argue the tax violates the Commerce Clause by discriminating against digital asset transactions compared to traditional financial services, violates Due Process through its extraterritorial reach, and runs afoul of the federal Internet Tax Freedom Act. A preliminary injunction was filed on September 9, 2026, seeking to block enforcement before the January 1, 2027 effective date. Without court intervention, firms will face compliance costs estimated at hundreds of thousands to over $1 million per company.
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