Digital Chamber challenges Illinois crypto tax law

• The Digital Chamber has sued Illinois over a new cryptocurrency tax reporting law.
• The industry group argues the legislation violates constitutional protections and federal law.
• The case could influence how US states regulate digital asset transactions.

The Digital Chamber has filed a lawsuit against the state of Illinois, arguing that its new cryptocurrency tax reporting requirements place unlawful obligations on digital asset businesses and users.

The lawsuit challenges Illinois' recently enacted legislation, claiming the law conflicts with the US Constitution and federal rules governing interstate commerce and digital assets.

The Digital Chamber said the reporting requirements would impose significant compliance costs on crypto firms while creating legal uncertainty for businesses operating across multiple states.

The organisation is seeking to block enforcement of the law, and no share price reaction was available because the Digital Chamber is a non-profit advocacy group.

Illinois is one of several US states introducing crypto-specific legislation as regulators and lawmakers expand oversight of the digital asset industry.

The outcome of the lawsuit could shape how other states approach cryptocurrency tax reporting requirements and broader digital asset regulation.