The Digital Chamber has filed a lawsuit against Illinois to block a new 0.2 percent tax on digital asset transactions scheduled to take effect on January 1, 2027.

The trade group argues that the measure, included in the state’s fiscal 2027 budget signed in June, unfairly singles out blockchain-based activity and violates constitutional protections. The complaint was submitted Tuesday in Sangamon County circuit court.

The organization contends that economically similar transactions should not face different tax treatment based solely on the technology used for recording and transferring ownership. It warns that approving such a policy could encourage similar measures targeting other emerging technologies.

The law requires brokers to register, collect the tax as a separate charge, maintain records and file monthly reports. It may apply to out-of-state entities generating significant revenue from Illinois customers.

Industry representatives, including the Crypto Council for Innovation, had urged a line-item veto prior to enactment. Commodity Futures Trading Commission Chair Michael Selig criticized the approach, noting it could hinder technological progress in financial markets.

The lawsuit seeks a declaration that the act is void and unenforceable. It adds to broader industry concerns over state-level regulations amid ongoing federal discussions on digital asset oversight.