,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #badd  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,april #i1 #bjai,mr4  
,davidson ( ,ohio 7= himself1 ,mr4      
,soto1 ,mr4 ,got!im]1 ,mr4 ,budd1 ,ms4  
,gabb>d1 & ,mr4 ,p]ry7 introduc$ !      
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,f9ancial ,s]vices1 & 9   
addition to ! ,committee on ,ways &     
,means1 = a p]iod to be subsequ5tly     
det]m9$ by ! ,speak]1 9 ea* case =      
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to am5d ! ,securities ,act (  
#aicc & ! ,securities ,ex*ange ,act (   
#aicd to exclude digital tok5s f !      
def9ition ( a security1 to direct !     
,securities & ,ex*ange ,commission to   
enact c]ta9 regulatory *anges reg>d+    
digital units secur$ ?r\gh public key   
cryptography1 to adju/ taxation (       
virtual curr5cies held 9 individual     
retirem5t acc\nts1 to create a tax      
exemption = ex*anges ( "o virtual       
curr5cy = ano!r1 to create a de m9imis  

exemption f taxation = ga9s realiz$ f ! 
sale or ex*ange ( virtual curr5cy = o!r 
?an ca%1 & = o!r purposes4  #a4 ,%ort   
title ,?is ,act may be cit$ z ! ,tok5   
,taxonomy ,act ( #bjai4  #b4 ,securities
 ,act ( #aicc  7a7 ,def9ition ( digital 
tok5 ,section #b7;a7 ( ! ,securities    
,act ( #aicc 7#ae ,u4,s4,c4 #gg;b7a77 is
 am5d$ by add+ at ! end ! foll[+3  7#bj7
 ,digital tok5 ,! t]m digital tok5 means
 a digital unit-- 7,a7 t is creat$--    
7i7 9 response to ! v]ification or      
collection ( propos$ transactions2  7ii7
 pursuant to rules = ! digital unit's   
creation & supply t _c be alt]$ by any  
s+le p]son or p]sons "u common control2 
or  7iii7 z an initial allocation (     
digital units t w o!rwise be creat$ 9   
accordance ) clause 7i7 or 7ii72  7,b7 t
 has a transaction hi/ory t-- 7i7 is    
record$ 9 a di/ribut$1 digital l$g] or  
digital data /ructure 9 :i* cons5sus is 
a*iev$ ?r\gh a ma!matically v]ifiable   
process2 &  7ii7 aft] cons5sus is rea*$1
 resi/s modification or tamp]+ by any   

s+le p]son or gr\p ( p]sons "u common   
control2  7,c7 t is capable ( be+       
transf]r$ betwe5 p]sons )\t an          
int]m$iate cu/odian2 &  7,d7 t is n a   
repres5tation ( a f9ancial int]e/ 9 a   
company or p>tn]%ip1 includ+ an own]%ip 
int]e/ or rev5ue %>e4  7#ba7 ,digital   
unit ,! t]m digital unit means a        
repres5tation ( economic1 propriet>y1 or
 access rights t is /or$ 9 a            
comput]-readable =mat4  4  7b7          
,def9ition ( security ,section          
#b7;a77#a7 ( ! ,securities ,act ( #aicc 
7#ae ,u4,s4,c4 #gg;b7a77#a77 is am5d$-- 
7#a7 by ins]t+ 7,a7 aft] 7#a72 &  7#b7  
by add+ at ! end ! foll[+3  7,b7 ,su*   
t]m does n include a digital tok54  4   
7c7 ,exemption ,section #d7;a7 ( !      
,securities ,act ( #aicc 7#ae ,u4,s4,c4 
#gg;d7a77 is am5d$ by add+ at ! end !   
foll[+3  7#h7 ,transactions involv+ !   
(f]1 promotion1 or sale ( a digital unit
 if-- 7,a7 ! p]son (f]+1 promot+1 or    
sell+ ! digital unit has a reasonable & 
good fai? belief t su* digital unit is a

 digital tok52 &  7,b7 )9 n9ety days    
foll[+ a writt5 notification f !        
,commission to su* p]son t su* digital  
unit has be5 det]m9$ by ! ,commission to
 be a security1 po/s public notice ( su*
 notification & takes reasonable ef=ts  
to cease all sales & return all proce$s 
f any sales ( su* digital unit1 exclud+ 
funds reasonably sp5t on ! developm5t ( 
te*nology associat$ ) ! digital unit4  4
  7d7 ,preemption ( ,/ate law ,section  
#ah ( ! ,securities ,act ( #aicc 7#ae   
,u4,s4,c4 #ggr7 is am5d$-- 7#a7 by      
r$esignat+ subsection 7d7 z subsection  
7e72 &  7#b7 by ins]t+ aft] subsection  
7c7 ! foll[+3  7d7 ,digital tok5s  7#a7 
,9 g5]al ,no law1 rule1 regulation1 or  
ord]1 or o!r adm9i/rative action ( any  
,/ate or any political subdivision      
!re(--  7,a7 requir+1 or ) respect to1  
regi/ration or qualification (          
securities1 or regi/ration or           
qualification ( securities transactions1
 %all directly or indirectly apply to a 
digital tok52  7,b7 %all directly or    

indirectly prohibit1 limit1 or impose   
any conditions ^u ! use (-- 7i7 )       
respect to a digital tok51 any          
disclosure docum5t conc]n+ an (f] or    
sale ( a digital tok5 t is prep>$ by or 
on behalf ( a p]son develop+1 (f]+1 or  
sell+ a digital tok52 or  7ii7 any proxy
 /atem5t1 report to digital tok5-hold]s1
 or o!r disclosure docum5t relat+ to a  
digital tok5 or a p]son develop+1 (f]+1 
or sell+ a digital tok52  7,c7 %all     
directly or indirectly prohibit1 limit1 
or impose conditions1 bas$ on ! m]its ( 
a digital tok5 (f]+ or a p]son develop+1
 (f]+1 or sell+ a digital tok51 ^u ! (f]
 or sale ( any digital tok52 or  7,d7   
%all directly or indirectly require !   
fil+ ( any notices or o!r docum5ts1 or !
 assessm5t ( any fees1 ) respect to     
digital tok5s or digital tok5           
transactions4  7#b7 ,pres]vation ( fraud
 au?ority ,/ates & political            
subdivisions !re( %all reta9            
jurisdiction "u ! laws ( su* ,/ate to   
inve/igate & br+ en=cem5t actions )     

respect to fraud or deceit1 or unlawful 
conduct by any p]son1 9 connection )    
digital tok5s or digital tok5           
transactions4  4  #c4 ,securities       
,ex*ange ,act ( #aicd  7a7 ,def9ition ( 
bank ,section #c7;a77#f77;,c7 ( !       
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;c7a77#f77;,c77 is am5d$-- 
7#a7 by ins]t+ or tru/ company1 aft]    
,home ,own]s' ,loan ,act12 &  7#b7 by   
/rik+ receiv+ deposits or ex]cis+       
fiduci>y p[]s & ins]t+ receiv+ deposits1
 provid+ cu/odial s]vices1 or ex]cis+   
fiduci>y p[]s4  7b7 ,def9ition (        
security ,section #c7;a77#aj7 ( !       
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;c7a77#aj77 is am5d$--     
7#a7 by ins]t+ 7,a7 aft] 7#a72 &  7#b7  
by add+ at ! end ! foll[+3  7,b7 ,su*   
t]m does n include a digital tok54  4   
7c7 ,def9ition ( digital tok5 ,section  
#c7;a7 ( ! ,securities ,ex*ange ,act (  
#aicd 7#ae ,u4,s4,c4 #gh;c7a77 is am5d$ 
by add+ at ! end ! foll[+3  7#hb7       
,digital tok5 ,! t]m digital tok5 has ! 

mean+ giv5 to x 9 section #b7;a7 ( !    
,securities ,act ( #aicc4  4  7d7       
,cl]ical am5dm5ts ,section #c7;a7 ( !   
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;c7a77 is am5d$--  7#a7 by 
mov+ p>agraph 7#gi7 s z to appe> aft]   
p>agraph 7#gh72 &  7#b7 by r$esignat+ ! 
second p>agraph 7#hj7 7relat+ to ,fund+ 
portal7 z p>agraph 7#ha74  #d4 ,inve/m5t
 ,advis]s ,act ( #aidj  7a7 ,def9ition (
 digital tok5 ,section #bjb7;a7 ( !     
,inve/m5t ,advis]s ,act ( #aidj 7#ae    
,u4,s4,c4 #hj;b-#b7;a77 is am5d$-- 7#a7 
by r$esignat+ ! second p>agraph 7#bi7 z 
p>agraph 7#ca72 &  7#b7 by add+ at ! end
 ! foll[+3  7#cb7 ,! t]m digital tok5   
has ! mean+ giv5 to x 9 section #b7;a7 (
 ! ,securities ,act ( #aicc4  4  7b7    
,def9ition ( security ,section          
#bjb7;a77#ah7 ( ! ,inve/m5t ,advis]s    
,act ( #aidj 7#ae ,u4,s4,c4             
#hj;b-#b7;a77#ah77 is am5d$-- 7#a7 by   
ins]t+ 7,a7 aft] 7#ah72 &  7#b7 by add+ 
at ! end ! foll[+3  7,b7 ,su* t]m does n
 include a digital tok54  4  7c7        

,def9ition ( bank ,section              
#bjb7;a77#b77;,c7 ( ! ,inve/m5t ,advis]s
 ,act ( #aidj 7#ae ,u4,s4,c4            
#hj;b-#b7;a77#b77;,c77 is am5d$ by /rik+
 receiv+ deposits or ex]cis+ fiduci>y   
p[]s & ins]t+ receiv+ deposits1 provid+ 
cu/odial s]vices1 or ex]cis+ fiduci>y   
p[]s4  #e4 ,inve/m5t ,company ,act (    
#aidj  7a7 ,def9ition ( digital tok5    
,section #bjb7;a7 ( ! ,inve/m5t ,company
 ,act ( #aidj 7#ae ,u4,s4,c4            
#hj;a-#b7;a77 is am5d$ by add+ at ! end 
! foll[+3  7#ee7 ,! t]m digital tok5 has
 ! mean+ giv5 to x 9 section #b7;a7 ( ! 
,securities ,act ( #aicc4  4  7b7       
,def9ition ( security ,section          
#bjb7;a77#cf7 ( ! ,inve/m5t ,company    
,act ( #aidj 7#ae ,u4,s4,c4             
#hj;a-#b7;a77#cf77 is am5d$--  7#a7 by  
ins]t+ 7,a7 aft] 7#cf72 &  7#b7 by add+ 
at ! end ! foll[+3  7,b7 ,su* t]m does n
 include a digital tok54  4  7c7        
,def9ition ( bank ,section #b7;a77#e7 ( 
! ,inve/m5t ,company ,act ( #aidj 7#ae  
,u4,s4,c4 #hj;a-#b7;a77#e77 is am5d$ by 

/rik+ receiv+ deposits or ex]cis+       
fiduci>y p[]s & ins]t+ receiv+ deposits1
 provid+ cu/odial s]vices1 or ex]cis+   
fiduci>y p[]s4  #f4 ,rule ( ,con/ruction
 ) respect to ,,cftc & ,,ftc ,no?+ 9 ?is
 ,act or ! am5dm5ts made by ?is ,act    
%all be con/ru$ to limit ! application (
 ! ,commodity ,ex*ange ,act or ! ,f$]al 
,trade ,commission ,act4  #g4           
,satisfactory control location          
requirem5t  ,n lat] ?an #ij days aft] ! 
date ( ! enactm5t ( ?is ,act1 !         
,commission %all am5d section           
#bdj4ae;c#c-c ( title #ag1 ,code (      
,f$]al ,regulations1 to provide t !     
requirem5t = a satisfactory control     
location = any digital unit 7z def9$ "u 
section #b7;a7 ( ! ,securities ,act (   
#aicc7 t is a security is fulfill$ by   
protect+ ! digital unit us+ public key  
cryptography & by foll[+ comm]cially    
reasonable cyb]security practices to    
ma9ta9 ! privacy & accessibility (      
suffici5t private key mat]ial to solely 
be able to sign on behalf ( su* digital 

unit4  #h4 ,individual retirem5t acc\nt 
inve/m5ts 9 c]ta9 virtual curr5cies n   
treat$ z di/ributions  7a7 ,9 g5]al     
,section #djh7m7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$-- 7#a7 9 p>agraph
 7#c7--  7,a7 9 ! head+ ( ! p>agraph1 by
 /rik+ & bullion & ins]t+ 1 bullion1 &  
virtual curr5cies2  7,b7 9 subp>agraph  
7,a77iv71 by /rik+ or2  7,c7 9          
subp>agraph 7,b71 by ins]t+ or aft]     
futures contract12  7,d7 by ins]t+ aft] 
subp>agraph 7,b7 ! foll[+3  7,c7 virtual
 curr5cy4  2 &  7,e7 by /rik+ if su*    
bullion & ins]t+ ,?is p>agraph %all only
 apply to bullion :i*2 &  7#b7 by add+  
at ! end ! foll[+3  7#d7 ,virtual       
curr5cy def9$ ,= purposes ( ?is         
subsection1 ! t]m virtual curr5cy means 
a digital repres5tation ( value t is us$
 z a m$ium ( ex*ange & is n curr5cy 7)9 
! mean+ ( section #ihh74  4  7b7        
,effective date ,! am5dm5ts made by ?is 
section %all apply to sales or ex*anges 
on or aft] ,janu>y #a1 #bjag4  #i4      
,c]ta9 ex*anges ( virtual curr5cy treat$

 z non-taxable ex*anges  7a7 ,9 g5]al   
,section #ajca ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$--  7#a7 9 !      
head+1 by /rik+ real prop]ty & ins]t+   
c]ta9 prop]ty2 &  7#b7 9 subsection 7a71
 by add+ at ! end ! foll[ new p>agraph3 
7#d7 ,ex*ange ( virtual curr5cy ,an     
ex*ange ( virtual curr5cy 7z def9$ "u   
section #djh7m77 %all be treat$ z if su*
 ex*ange 7 an ex*ange ( real prop]ty "u 
?is section4  4  7b7 ,cl]ical am5dm5t ,!
 table ( p>ts = "p ,,iii ( sub*apt] ,o (
 *apt] #a ( su* ,code is am5d$ by /rik+ 
,ex*ange ( real prop]ty & ins]t+        
,ex*ange ( c]ta9 prop]ty 4  7c7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to ex*anges made on  
or aft] ,janu>y #a1 #bjag4  #aj4 ,ga9 f 
sale or ex*ange ( virtual curr5cy  7a7  
,9 g5]al ,"p ,,iii ( sub*apt] ,b ( *apt]
 #a ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by ins]t+ aft] section #aci;,f 
! foll[+ new section3  #aci;,g4 ,ga9 f  
sale or ex*ange ( virtual curr5cy  7a7  
,9 g5]al ,gross income %all n include   

ga9 f ! sale or ex*ange ( virtual       
curr5cy 7z def9$ "u section #djh7m77 =  
o!r ?an ca% or ca% equival5ts4  7b7     
,limitation  7#a7 ,9 g5]al ,! am\nt (   
ga9 exclud$ f gross income "u subsection
 7a7 ) respect to a sale or ex*ange (   
virtual curr5cy %all n exce$ #fjj4  7#b7
 ,aggregation rule ,= purposes ( ?is    
subsection1 all sales or ex*anges :i*   
are "p ( ! same transaction 7or a s]ies 
( relat$ transactions7 %all be treat$ z 
"o sale or ex*ange4  7c7 ,inflation     
adju/m5t ,9 ! case ( any taxable ye>    
beg9n+ 9 a cal5d> ye> aft] #bjah1 !     
doll> am\nt 9 subsection 7b7 %all be    
increas$ by an am\nt equal to--  7#a7   
su* doll> am\nt1 multipli$ by  7#b7 !   
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> beg9s1 det]m9$ by sub/itut+ 
cal5d> ye> #bjag = cal5d> ye> #bjaf 9   
subp>agraph 7a77ii7 !re(4  ,any increase
 det]m9$ "u ! prec$+ s5t5ce %all be     
r\nd$ to ! ne>e/ multiple ( #ej4  4  7b7
 ,cl]ical am5dm5t ,! table ( sections = 

"p ,,iii ( sub*apt] ,b ( *apt] #a ( su* 
,code is am5d$ by ins]t+ aft] ! item    
relat+ to section #aci;,f ! foll[+ new  
item3  ,sec4 #aci;,g4 ,ga9 f sale or    
ex*ange ( virtual curr5cy4  4  7c7      
,report+ ( ga9s or losses ,! ,secret>y (
 ! ,treasury %all issue regulations     
provid+ = in=mation returns on          
transactions 9 virtual curr5cy 7z def9$ 
"u section #djh7m7 ( ! ,int]nal ,rev5ue 
,code ( #aihf7 = :i* ga9 or loss is     
recogniz$4  7d7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
) respect to transactions ent]$ into on 
or aft] ,janu>y #a1 #bjag4