Anchorage Digital Backs Lawsuit to Block Illinois Crypto Tax

The lawsuit was brought by the Blockchain Association and the Crypto Council for Innovation. It targets an Illinois law, the Digital Asset Tax Act, that is set to take effect Jan. 1, 2027, according to the post.

Anchorage Digital’s declaration tells the court how the new tax created by the law would hurt the company’s business and its customers, per the post.

In its blog post, Anchorage Digital said the law taxes people 0.2% of the value of their crypto when it is exchanged, transferred or held in storage, whether or not they “sell, buy or make a dime” on the crypto.

“Illinois doesn’t tax any other kind of asset this way,” Anchorage Digital said in the post. “If you move money from your checking account to your savings account you pay nothing. Do the equivalent with crypto, and the state wants a cut.”

In addition, the law includes felony charges for companies that don’t comply, is unclear about basic questions such as when the tax applies, and is estimated by the industry to require infrastructure for compliance that would cost between several hundred thousand dollars and over $1 million, per the post.