Summary#
This bill would change the Internal Revenue Code to set many new tax rules for digital assets (like cryptocurrencies and stablecoins). Key parts include:
- A de minimis fee exception: small network or transaction fees paid in digital assets (generally up to $10 total) would not trigger gain or loss recognition for the payer.
- A simplified accounting election for widely traded digital assets: taxpayers could elect to recognize annual net gain or loss by asset type and treat those amounts as short-term.
- Rules for U.S. dollar stablecoins: the bill generally treats acquisition and sale values of qualified U.S. dollar stablecoins as their issuer redemption value, subject to narrow tolerances and some exceptions.
- Parity with traditional assets: the bill adds rules to treat certain digital-asset lending transfers like securities lending, allows mark-to-market accounting for dealers and traders of covered digital assets, creates a trading safe harbor, and adjusts charitable contribution rules for some digital assets.
- Application of existing anti-abuse tax rules: wash sale, constructive sale, straddle, and related rules are extended or clarified to cover many digital assets, and certain tokenized assets may be treated as equivalent to traditional securities when economically equivalent.
- Mining and staking: income from mining, staking, and similar validation-supporting activities is sourced and characterized (including being treated as ordinary income) under specified rules.
- Compliance and reporting: the bill changes broker reporting rules for specified digital assets, adds backup withholding and other reporting rules for some illiquid assets, and creates a Digital Asset Voluntary Disclosure Program for past violations.
- Administrative and definitional provisions: the Treasury must issue regulations, perform a study on new digital reporting technologies, and the bill adds many definitions (for traded digital asset, widely traded, tokenized, wrapped, stablecoin, staking, mining, etc.).
Many provisions have section-specific effective dates. Several provisions apply to taxable years beginning after December 31, 2026 or 2027, and some apply to transactions made after enactment.
What it means for you#
- If you pay small network or transaction fees in crypto, those tiny payments may not create a taxable sale of the asset (subject to the bill's limits and exclusions).
- Holders of widely traded digital assets could elect a simpler annual accounting method that recognizes net gain or loss by asset type and treats those gains as short-term.
- People who buy or sell qualified U.S. dollar stablecoins may have basis and sale value measured by the stablecoin's redemption value (with narrow exceptions for traders and other specified persons).
- Dealers and traders of digital assets can elect mark-to-market accounting; other traders may face new rules aligning digital assets with securities and commodities rules.
- Miners and stakers will have clearer rules: income from validation-supporting activities is treated as ordinary income and is sourced based on residency and business location rules in the bill.
- Brokers and custodians will face updated reporting and withholding duties for many digital assets; taxpayers should expect new information returns and possible changes to how basis is tracked.
- A voluntary disclosure program would let taxpayers correct past digital-asset reporting errors under specified remedial steps.
Expenses#
No publicly available information on federal budget costs or revenue effects is included in the bill text provided.
Proponents' View#
The bill’s text and section headings state its aims: remove tax barriers to using digital assets as a medium of exchange; provide parity between digital assets and comparable traditional financial assets; apply existing tax anti-abuse rules to digital assets; clarify mining and staking tax treatment; and ensure owners and users face an appropriate tax compliance burden. The bill also directs the Treasury to issue regulations and study new digital technologies for reporting and compliance.
Opponents' View#
No publicly available information on opponents' views or formal objections appears in the provided bill text or metadata.