Anchorage Digital has joined a legal challenge against the Digital Asset Tax Act in Illinois. The company argues that the tax would negatively impact its business operations and its clients, claiming that the law targets crypto assets in a way that other assets are not taxed.
The proposed tax imposes a 0.2% fee on the value of crypto assets when they are exchanged, transferred, or held in storage, regardless of whether the profit is made. Anchorage Digital points out that traditional bank transfers between checking and savings accounts are not subject to such taxes.
The industry estimates that the compliance infrastructure required to implement this tax would cost between several hundred thousand dollars and over $1 million. The law also includes felony charges for companies that fail to comply, while remaining unclear on basic application rules.
The legal action is led by the Blockchain Association and the Crypto Council for Innovation, who have filed a motion for a preliminary injunction to block the tax before its January 1, 2027, effective date. The Digital Chamber also filed a lawsuit in July, which was later joined by the Illinois Blockchain Association on September 1.