On Wednesday, September 9, 2026, PYMNTS reported that Anchorage Digital, a federally chartered cryptocurrency bank, submitted a declaration to a court in support of a lawsuit aimed at blocking a new Illinois law. This law, known as the Digital Asset Tax Act, is slated to take effect on January 1, 2027, and would impose taxes on cryptocurrency when it is exchanged, transferred, or held in storage.
The lawsuit challenging the Digital Asset Tax Act was initiated by the Blockchain Association and the Crypto Council for Innovation. Anchorage Digital’s declaration provides the court with details on how the new tax would negatively impact the company’s operations and its customers.
According to Anchorage Digital’s blog post, the law levies a tax of 0.2% on the value of cryptocurrency, regardless of whether any profit is made through buying, selling, or other transactions. The company highlighted that this tax is unique, as Illinois does not apply a similar tax to other asset types, drawing a parallel to how moving money between checking and savings accounts incurs no such charge.
Beyond the financial implications, the Digital Asset Tax Act also includes felony charges for non-compliance. The law’s provisions are reportedly unclear regarding the precise application of the tax, and industry estimates suggest that implementing the necessary infrastructure for compliance could cost between several hundred thousand dollars and over $1 million.
Anchorage Digital stated that these costs would directly affect the company and its clients, and that many other crypto firms would face similar challenges and uncertainties.
Illinois Governor JB Pritzker signed the bill into law in June, with the tax provision having been added to the state’s broader budget bill at the last minute.
In response, the Crypto Council for Innovation and the Blockchain Association filed a motion seeking a preliminary injunction to prevent the state from enforcing the Digital Asset Tax Act before its effective date.
Earlier, in July, The Digital Chamber had also filed a lawsuit seeking to halt the tax on digital asset business activity, arguing that it would harm its members, who were already incurring costs to prepare for its implementation. On September 1, The Digital Chamber announced that the Illinois Blockchain Association had joined its lawsuit.
Source: PYMNTS
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