# Crypto Industry Files First Major Lawsuit Against Illinois' Digital Asset Tax Industry advocates claim the blockchain-targeting tax violates legal principles. - **Source:** [CryptoPotato](https://brifing.si/source/bd22636b-ec8d-42a8-8cca-1937c50e0f6c) - **Published:** 2026-07-22 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/f375c061-1653-4573-ad43-4a7e2d66be9d ## Backlash Against Crypto Tax The Digital Chamber has sued to block Illinois' digital asset tax set for 2027. Industry leaders argue this blockchain-specific levy is discriminatory. The tax imposes a 0.02% charge on every digital asset transfer, affecting exchanges and wallet providers operating in the state. ## Tax Scope and Impact Illinois' Digital Asset Tax Act (DATA) targets crypto exchanges, wallet providers, and custodians with over $100k in state transactions. As the first such law in the U.S., it creates multiple tax layers per transaction, potentially increasing costs and discouraging crypto activity in Illinois. ## Criticism of the Law Andreessen Horowitz executive Miles Jennings called it 'one of the most anti-crypto laws' in the U.S. Critics highlight that the provision was slipped into the budget the night before the final vote, bypassing proper industry consultation or public debate. ## Legal Arguments Plaintiffs claim the tax violates state and federal constitutions by treating blockchain transactions differently from traditional financial systems. The Digital Chamber seeks reimbursement for legal costs while challenging what they call unequal treatment under the law. ## Consumer and Industry Effects TDC CEO Cody Carbone warns the tax will harm consumers and businesses alike. By taxing all transactions regardless of profit/loss, the law may stifle crypto innovation in Illinois. The industry fears this could set a concerning precedent for other states. ## Diverging State Approaches Unlike Illinois, states like Texas and Florida are embracing crypto-friendly policies. Texas now allows Bitcoin in state reserves, while Florida banned CBDCs and eased rules for crypto operators. These contrasting approaches highlight growing regulatory fragmentation across U.S. states. ## Sources covering this story - https://cryptopotato.com/crypto-industry-launches-first-major-legal-challenge-to-illinois-digital-asset-tax/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._