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Crypto lobby group TDC sues Illinois to block digital asset tax

Crypto lobby group TDC sues Illinois to block digital asset tax

A crypto lobbying organization has sued the state of Illinois over a last-minute tax provision inserted into the state budget last month.

TDC (otherwise known as The Digital Chamber) alleged that Illinois’ Digital Asset Tax Act violated both the U.S. and state constitutions and is preempted by a federal tax law. The lawsuit, filed Tuesday, asks a federal judge to block the Illinois state government from enforcing the tax.

The tax violates the Illinois state constitution’s uniformity and due process clauses, the Commerce Clause of the U.S. Constitution and the Internet Tax Freedom Act by specifying digital asset transactions, the suit said.

The Digital Asset Tax Act was passed and approved on short notice last month, right before the…

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