,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #hhii  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #ai1 #bjbf,mr4   
,mill] ( ,ohio 7= himself1 ,mr4 ,hors=d1
 ,mr4 ,c>ey1 & ,ms4 ,del,bene7 introduc$
 ! foll[+ bill2 :i* 0 ref]r$ to !       
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to provide = ! tax treatm5t (     
digital assets4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,digital ,asset    
,protection1 ,acc\ntability1            
,regulation1 ,innovation1 ,taxation1 &  
,yields ,act or ! ,digital ,asset       
,,p>ity ,act4  #b4 ,tax treatm5t (      
regulat$ paym5t /ableco9 transactions   
7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,o (  
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] section   
#ajde ! foll[+ new section3  #ajdf4     
,regulat$ paym5t /ableco9 transactions  
7a7 ,sale ( regulat$ paym5t /ableco9    
7#a7 ,9 g5]al ,9 ! case ( any sale or   
ex*ange ( a regulat$ paym5t /ableco91 no
 ga9 or loss %all be recogniz$ on su*   

sale or ex*ange unless ! taxpay]'s basis
 9 su* /ableco9 is less ?an #ii p]c5t ( 
! r$emption value ( su* /ableco94  7#b7 
,r$emption value ,= purposes ( ?is      
subsection1 ! t]m r$emption value means 
! doll> am\nt = :i* ! issu] is obligat$ 
to r$eem su* /ableco94  7b7 ,ex*ange (  
regulat$ paym5t /ableco9 ,9 ! case ( any
 ex*ange ( a regulat$ paym5t /ableco91 !
 acquir]'s basis 9 su* /ableco9 %all be 
deem$ to be #a4  7c7 ,transaction co/s n
 includ$ 9 basis ,am\nts paid or incurr$
 to facilitate ! sale or ex*ange ( a    
regulat$ paym5t /ableco9 %all n be      
includ$ 9 ! calculation ( ! basis ( su* 
/ableco94  7d7 ,regulat$ paym5t /ableco9
  7#a7 ,9 g5]al ,= purposes ( ?is       
section1 ! t]m regulat$ paym5t /ableco9 
means a digital asset-- 7,a7 t is a     
paym5t /ableco9 issu$ by a p]mitt$      
paym5t /ableco9 issu]1  7,b7 ) respect  
to :i* ! issu] is obligat$ to conv]t1   
r$eem1 or repur*ase ! paym5t /ableco9 = 
a fix$ am\nt ( ,unit$ ,/ates doll>s1 &  
7,c7 :i* 0 acquir$ by ! taxpay] = a     

price )9 #a p]c5t ( #a4jj4  7#b7        
,def9itions ,! t]ms paym5t /ableco9 &   
p]mitt$ paym5t /ableco9 issu] h ! mean+ 
giv5 ^? t]ms1 respectively1 9 section #b
 ( ! ,,g5ius ,act 7#ab ,u4,s4,c4 #eija74
  7e7 ,deal]s & trad]s ,?is section %all
 n apply to ! sale or ex*ange ( any     
regulat$ paym5t /ableco9 by a taxpay] :o
 is a deal] or trad] 9 securities or    
commodities4  7f7 ,regulations &        
guidance ,! ,secret>y %all prescribe su*
 regulations or o!r guidance z may be   
necess>y or appropriate to c>ry out ?is 
section1 includ+ to prev5t ! avoidance (
 tax "u ?is section4  4  7b7 ,cl]ical   
am5dm5t ,! table ( sections = "p ,,iii (
 sub*apt] ,o ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] ! item relat+ to section #ajde !  
foll[+ new item3  ,sec4 #ajdf4 ,regulat$
 paym5t /ableco9 transactions4  4  7c7  
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbe4  #c4   
,digital asset trad+ safe h>bor  7a7 ,9 

g5]al ,p>agraph 7#b7 ( section #hfd7;b7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by r$esignat+ subp>agraph 7,c7 z  
subp>agraph 7,d7 & by ins]t+ aft]       
subp>agraph 7,b7 ! foll[+ new           
subp>agraph3  7,c7 ,trad$ digital assets
  7i7 ,9 g5]al ,trad+ 9 trad$ digital   
assets ?r\gh a resid5t brok]1 commission
 ag5t1 cu/odian1 or o!r indep5d5t ag5t4 
7ii7 ,trad+ = taxpay]'s own acc\nt      
,trad+ 9 trad$ digital assets = !       
taxpay]'s own acc\nt1 :e!r by ! taxpay] 
or ! taxpay]'s employees or ?r\gh a     
resid5t brok]1 commission ag5t1         
cu/odian1 digital asset ex*ange1 or o!r 
ag5t1 & :e!r or n any su* employee or   
ag5t has discretion>y au?ority to make  
decisions 9 effect+ ! transactions4 ,?is
 clause %all n apply 9 ! case ( a deal] 
9 digital assets4  7iii7 ,limitation    
,?is subp>agraph %all apply only if !   
digital assets are ( a k9d cu/om>ily    
dealt 9 on a digital asset ex*ange4  4  
7b7 ,con=m+ am5dm5t ,subp>agraph 7,d7 ( 
section #hfd7;b77#b7 ( ! ,int]nal       

,rev5ue ,code ( #aihf1 z r$esignat$ by  
subsection 7a71 is am5d$ by /rik+       
7,a77i7 & 7,b77i7 & ins]t+ 7,a77i71     
7,b77i71 & 7,c77i74  7c7 ,effective date
 ,! am5dm5ts made by ?is section %all   
apply to taxable ye>s beg9n+ aft] ! date
 ( enactm5t ( ?is ,act4  #d4 ,tax       
treatm5t ( digital asset l5d+ agreem5ts 
& relat$ matt]s  7a7 ,9 g5]al           
,subsection 7a7 ( section #ajeh ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ 1 or eligible digital assets  
aft] 7z def9$ 9 section #abcf7;c774  7b7
 ,basis ,subsection 7c7 ( section #ajeh 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by add+ at ! end ! foll[+3 ,9 !   
case ( a basis adju/m5t to securities or
 eligible digital assets ) respect to   
:i* an agreem5t is 9 place :i* meets !  
requirem5ts ( subsection 7b71 su*       
adju/m5t %all be made by factor+ 9 !    
return to ! transf]or ( securities      
id5tical to ! securities transf]r$44    
7c7 ,sub/itute paym5ts ,section #ajeh ( 
! ,int]nal ,rev5ue ,code ( #aihf is     

am5d$ by add+ at ! end ! foll[+ new     
subsection3  7d7 ,sub/itute paym5ts ,any
 paym5t made to a l5d] pursuant to an   
agreem5t describ$ 9 subsection 7b7 9    
lieu ( /ak+ rew>ds1 transaction fees1   
protocol di/ributions1 or o!r am\nts t  
w\ld o!rwise be payable ) respect to a  
l5t digital asset %all be includ$ 9 !   
gross income ( ! l5d] 9 ! same mann] z  
if su* am\nts _h be5 receiv$ directly by
 ! l5d]4  4  7d7 ,rule ( con/ruction    
,no?+ 9 ?is section1 or any am5dm5ts    
made by ?is section1 %all be con/ru$ to 
create any inf]5ce ) respect to !       
classification ( any digital asset z a  
security "u ! ,securities ,act ( #aicc  
7#ae ,u4,s4,c4 #gg;a et seq47 or !      
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;a et seq474  7e7 ,rulemak+
 au?ority ,! ,secret>y ( ! ,treasury 7or
 ! ,secret>y's delegate7 may adopt rules
 to implem5t ! am5dm5ts made by ?is     
section1 includ+ ! application ( !      
am5dm5ts made by ?is section to =ks1    
airdrops1 & simil> subsidi>y value4  7f7

 ,effective date ,! am5dm5ts made by ?is
 section %all apply to ex*anges 9       
taxable ye>s beg9n+ aft] ! date (       
enactm5t ( ?is ,act4  #e4 ,application (
 wa% sale rules to digital assets  7a7  
,9 g5]al ,section #ajia ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 /rik+ /ock or securities ea* place x   
appe>s & ins]t+ specifi$ assets1 &  7#b7
 by /rik+ %>es ( ea* place x appe>s4    
7b7 ,specifi$ asset ,section #ajia ( su*
 ,code is am5d$ by add+ at ! end !      
foll[+ new subsections3  7g7 ,specifi$  
asset ,= purposes ( ?is section-- 7#a7  
,9 g5]al ,! t]m specifi$ asset means--  
7,a7 any /ock or security1 &  7,b7 any  
digital asset4  7#b7 ,contracts &       
options ,except z o!rwise provid$ 9     
regulations1 ! t]m specifi$ asset %all  
include any contract or option to       
acquire or sell any specifi$ asset      
describ$ 9 p>agraph 7#a74  7h7 ,treatm5t
 ( c]ta9 assets z sub/antially id5tical 
7#a7 ,9 g5]al ,= purposes ( det]m9+ :e!r
 an asset is sub/antially id5tical to   

any digital asset "u ?is section1 except
 to ! ext5t provid$ by regulations      
prescrib$ by ! ,secret>y-- 7,a7 !       
det]m9ation ( :e!r an asset is          
sub/antially id5tical to any o!r asset  
%all be made on ! basis ( ! economic    
exposure ( ! asset1  7,b7 ! m]e fact t  
an asset may h diff]5t or no vot+ rights
 %all n prev5t ! asset f be+            
sub/antially id5tical to any o!r asset1 
7,c7 ! m]e fact t an asset may trade on 
a diff]5t ex*ange 7or no ex*ange7 or a  
diff]5t block*a9 7or no block*a97 %all n
 be tak5 into acc\nt1 &  7,d7 any asset 
t w\ld n o!rwise be treat$ z            
sub/antially id5tical to ano!r asset    
%all n be s treat$ m]ely because ! asset
 is bas$ on ! same or sub/antially      
simil> protocol or comput] code4  7#b7  
,no inf]5ce ,no?+ 9 ?is subsection %all 
create any inf]5ce z to :e!r any prop]ty
 is sub/antially id5tical to any prop]ty
 t is n a digital asset or z to :e!r any
 prop]ty 0 sub/antially id5tical to any 
digital asset be=e ! effective date (   

?is subsection4  4  7c7 ,con=m+ am5dm5ts
  7#a7 ,sections #cab7;f77#a71          
#abef7;f77#e71 & #fjde7;g77#b77;,b77ii7 
are ea* am5d$ by /rik+ /ock or          
securities & ins]t+ specifi$ assets4    
7#b7 ,section #ajia7;a7 is am5d$ by     
/rik+ ! la/ s5t5ce4  7#c7 ,section      
#ajia7;e7 7z am5d$ by subsection 7a77 is
 am5d$ to read z foll[s3  7e7 ,c]ta9    
%ort sales ( specifi$ assets & specifi$ 
asset futures contracts ,to sell ,rules 
simil> to ! rules ( subsection 7a7 %all 
apply to any loss realiz$ on ! clos+ ( a
 %ort sale ( 7or ! sale1 ex*ange1 or    
t]m9ation ( a specifi$ asset futures    
contract to sell7 specifi$ assets if1 )9
 a p]iod beg9n+ #cj days be=e ! date (  
su* clos+ & end+ #cj days aft] su*      
date-- 7#a7 sub/antially id5tical       
specifi$ assets 7 sold1 or  7#b7 ano!r  
%ort sale ( 7or specifi$ asset futures  
contracts to sell7 sub/antially id5tical
 specifi$ assets 0 ent]$ into4  ,=      
purposes ( ?is subsection1 ! t]m        
specifi$ asset futures contract has !   

mean+ provid$ by section #abcd;,b7c74  4
  7#d7 ,! head+ ( section #ajia is am5d$
 by /rik+ /ock or securities & ins]t+   
specifi$ assets4  7#e7 ,! head+s (      
subsections 7b71 7c71 & 7d7 ( section   
#ajia are ea* am5d$ by /rik+ ,/ock ea*  
place x appe>s & ins]t+ ,specifi$       
,assets4  7#f7 ,! item relat+ to section
 #ajia 9 ! table ( sections = "p ,,vii (
 sub*apt] ,o ( *apt] #a is am5d$ by     
/rik+ /ock or securities & ins]t+       
specifi$ assets4  7d7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to sales1 dispositions1 & t]m9ations   
aft] ! date ( enactm5t ( ?is ,act4  #f4 
,m>k-to-m>ket election  7a7 ,9 g5]al    
,section #dge ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by r$esignat+         
subsection 7g7 z subsection 7h7 & by    
ins]t+ aft] subsection 7f7 ! foll[+ new 
subsection3  7g7 ,election ( m>k ,to    
m>ket = deal]s & trad]s 9               
actively-,trad$ digital assets  7#a7    
,deal] 9 digital assets ,9 ! case ( a   
deal] 9 actively-trad$ digital assets :o

 elects ! application ( ?is subsection1 
?is section %all apply to digital assets
 held by su* deal] 9 ! same mann] z ?is 
section applies to securities held by a 
deal] 9 securities4  7#b7 ,trad] 9      
digital assets ,9 ! case ( a p]son :o is
 engag$ 9 a trade or bus9ess z a trad] 9
 actively trad$ digital assets1 & :o    
elects to h ?is p>agraph apply to su*   
trade or bus9ess z a trad] 9 actively   
trad$ digital assets1 subsection 7f77#a7
 %all apply to digital assets held by ! 
trad] 9 connection ) su* trade or       
bus9ess 9 ! same mann] z su* subsection 
applies to securities held by a trad] 9 
securities4  7#c7 ,limitation ,an       
election "u ?is section %all only apply 
to digital assets treat$ z actively     
trad$ 7z def9$ by ! ,secret>y74  7#d7   
,regulations & guidance ,! ,secret>y    
%all issue su* regulations & guidance z 
are necess>y to c>ry out ! provisions ( 
?is subsection4  4  7b7 ,effective date 
,! am5dm5t made by ?is section %all     
apply to taxable ye>s beg9n+ aft] ! date

 ( enactm5t ( ?is ,act4  #g4            
,application ( con/ructive sale rules to
 digital assets  7a7 ,9 g5]al ,section  
#abei is am5d$ by ins]t+ digital asset1 
aft] debt in/rum5t1 ea* place x appe>s4 
7b7 ,effective date ,! am5dm5t made by  
?is section %all apply to con/ructive   
sales aft] ! date ( enactm5t ( ?is ,act4
  #h4 ,treatm5t ( digital assets acquir$
 ?r\gh validation activities  7a7 ,9    
g5]al ,*apt] #a is am5d$ by ins]t+ aft] 
sub*apt] ,v ! foll[+ new sub*apt]3  ,w  
,digital assets acquir$ ?r\gh validation
 activities  ,sec4 #adjj,w-#a4          
,inclusion 9 gross income2 exp5ses n    
capitaliz$4,sec4 #adjj,w-#b4 ,election  
to def] inclusion ( income & capitalize 
exp5ses4,sec4 #adjj,w-#c4 ,def9itions4  
#adjj,w-#a4 ,inclusion 9 gross income2  
exp5ses n capitaliz$ ,9 ! case ( !      
acquisition ( any newly creat$ digital  
asset by a taxpay] :i* is a specifi$    
taxpay] dur+ any taxable ye>-- 7#a7 !   
fair m>ket value ( su* asset %all be    
includ$ 9 su* taxpay]'s gross income z  

ord9>y income = su* taxable ye>1 &  7#b7
 ! taxpay]'s basis 9 su* asset %all be  
increas$ by ! am\nt includ$ 9 gross     
income "u p>agraph 7#a74  #adjj,w-#b4   
,election to def] inclusion ( income &  
capitalize exp5ses  7a7 ,9 g5]al ,9 !   
case ( a taxpay] :i* is a specifi$      
taxpay] = any taxable ye> to :i* an     
election "u subsection 7c7 applies--    
7#a7 any newly creat$ digital asset     
acquir$ by su* taxpay] dur+ su* taxable 
ye> %all n be includ$ 9 ! taxpay]'s     
gross income1  7#b7 specifi$ transaction
 co/s paid or incurr$ dur+ su* taxable  
ye> %all be *>geable to capital acc\nt &
 no d$uction %all o!rwise be all[$ "u   
?is subtitle ) respect to su* co/s1 &   
7#c7 section #adjj,w-#a %all n apply4   
7b7 ,ga9 & loss on disposition dur+     
election p]iod treat$ z ord9>y ,9 ! case
 ( ! disposition ( any newly creat$     
digital asset to :i* subsection 7a77#a7 
applies-- 7#a7 ! excess 7if any7 (--    
7,a7 ! am\nt realiz$ 79 ! case ( a sale 
or ex*ange7 or ! fair m>ket value ( su* 

asset 79 ! case ( any o!r disposition71 
ov]  7,b7 ! adju/$ basis ( su* asset1   
%all be treat$ z ga9 :i* is ord9>y      
income 7& su* ga9 %all be recogniz$     
not)/&+ any o!r provision ( ?is         
subtitle71 &  7#b7 ! excess 7if any7 ( !
 am\nt describ$ 9 p>agraph 7#a77;,b7 ov]
 ! am\nt describ$ 9 p>agraph 7#a77;,a7  
%all be treat$ z loss :i* is ord9>y     
loss4  7c7 ,election  7#a7 ,9 g5]al ,an 
election "u ?is section %all apply = !  
taxable ye> = :i* made & ea* ( ! f\r    
successive taxable ye>s !reaft] unless  
revok$ by ! taxpay]4 ,su* election %all 
be made at su* "t & 9 su* mann] z !     
,secret>y may provide4  7#b7            
,application to p>tn]%ips & ,s          
corporations ,9 ! case ( any p>tn]%ip or
 ,s corporation1 ! election "u ?is      
section %all be made at ! p>tn]%ip or ,s
 corporation level4  7d7 ,ga9s & losses 
on disposition aft] election p]iod ,9 ! 
case ( ! sale1 ex*ange1 or o!r          
disposition ( a digital asset ) respect 
to :i* an election 0 9 effect "u        

subsection 7b7 = a prior taxable ye>1   
ga9s & losses ) respect to su* asset    
%all be treat$ z long-t]m capital ga9s  
or long-t]m capital losses1 z ! case may
 be4  #adjj,w-#c4 ,def9itions ,=        
purposes ( ?is sub*apt]-- 7#a7 ,newly   
creat$ digital asset ,! t]m newly creat$
 digital asset means any digital asset--
 7,a7 n previ\sly own$ by any p]son o!r 
?an ! validator1 &  7,b7 t is issu$ 9   
connection ) ! validation ( digital     
asset transactions4  7#b7 ,specifi$     
taxpay] ,! t]m specifi$ taxpay] means1 )
 respect to ! acquisition ( any newly   
creat$ digital asset t is issu$ 9       
connection ) ! validation ( digital     
asset transactions1 a taxpay] :o is !   
p]son :o validat$ ! digital asset       
transactions 9 connection ) :i* su*     
digital asset 0 issu$4  7#c7 ,specifi$  
transaction co/s ,! t]m specifi$        
transaction co/s means any am\nt paid or
 incurr$ 9 validat+ any digital asset   
transaction if1 at ! "t su* am\nt is    
paid or incurr$ !re is a reasonable     

possibility t ! taxpay] w acquire a     
newly creat$ digital asset 9 connection 
) su* validation1 includ+ am\nts to--   
7,a7 claim or )draw su* asset f a /ak+  
pool1 validator1 or protocol1  7,b7     
execute a sm>t contract function to     
receive su* asset1 or  7,c7 transf] su* 
asset to a wallet or acc\nt controll$ by
 ! taxpay]4  4  7b7 ,cl]ical am5dm5t ,! 
table ( sub*apt]s = *apt] #a is am5d$ by
 ins]t+ aft] ! item relat+ to sub*apt]  
,v ! foll[+ new item3  ,sub*apt]        
,w--,digital assets acquir$ ?r\gh       
validation activities  4  7c7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply to assets acquir$ 9 taxable  
ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4   
#i4 ,*>itable contributions & qualifi$  
appraisals  7a7 ,9 g5]al ,section       
#agj7;f77#aa77;,a77ii77,i7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 actively trad$ digital assets1 be=e &  
any qualifi$ vehicle4  7b7 ,cl>ification
 ( application to qualifi$ appraisals   
,section #agj7;f77#aa77;,b7 ( su* ,code 

is am5d$ by add+ at ! end ! foll[+      
s5t5ce3 ,! requirem5ts ( ?is subp>agraph
 %all n apply to contributions (        
actively trad$ digital assets4  7c7     
,sub/antiation & valuation requirem5ts  
,section #agj7;f7 ( su* ,code is am5d$  
by add+ at ! end ! foll[+ new p>agraph3 
7#bj7 ,infrequ5tly trad$ digital assets 
7,a7 ,9 g5]al ,9 ! case ( a contribution
 ( a digital asset :i* is n an actively 
trad$ digital asset ! claim$ value ( :i*
 exce$s #ejj-- 7i7 p>agraph 7#h7 %all n 
apply & no d$uction %all be all[$ "u    
subsection 7a7 = su* contribution unless
 ! taxpay] sub/antiates ! contribution  
by a contemporane\s writt5 ackn[l$gm5t (
 ! contribution by ! donee organization 
t meets ! requirem5ts ( subp>agraph 7,b7
 & includes ! ackn[l$gm5t ) ! taxpay]'s 
return ( tax :i* includes ! d$uction1 & 
7ii7 if ! organization sells su* asset1 
! am\nt ( ! d$uction all[$ "u subsection
 7a7 %all n exce$ ! gross proce$s       
receiv$ f su* sale4  7,b7 ,cont5t (     
ackn[l$gm5t ,an ackn[l$gm5t meets !     

requirem5ts ( ?is subp>agraph if x      
includes ! foll[+ in=mation3 7i7 ,! "n &
 taxpay] id5tification numb] ( ! donor4 
7ii7 ,details ( ! transf] ( ! digital   
asset contribution1 includ+-- 7,i7      
specific addresses involv$ 9 !          
contribution1  7,,ii7 a description ( ! 
digital asset contribut$1 &  7,,iii7 !  
date ( ! contribution4  7iii7 ,a        
c]tification t ! digital asset 0 sold 9 
an arm's l5g? transaction betwe5        
unrelat$ p>ties4  7iv7 ,! am\nt ( gross 
proce$s f ! sale describ$ 9 clause      
7iii74  7v7 ,a /atem5t t ! d$uctible    
am\nt may n exce$ ! am\nt ! gross       
proce$s describ$ 9 clause 7iv74  7vi7   
,:e!r ! donee organization provid$ any  
goods or s]vices 9 consid]ation1 9 :ole 
or 9 "p1 = ! digital asset4  7vii7 ,a   
description & good fai? e/imate ( !     
value ( any goods or s]vices ref]r$ to 9
 clause 7vi71 or if su* goods or s]vices
 consi/ solely ( intangible religi\s    
b5efits 7z def9$ 9 #agj7;f77#h77;,b771 a
 /atem5t to t effect4  7,c7             

,contemporane\s ackn[l$gem5t2 ,in=mation
 to ,secret>y ,rules simil> to ! rules (
 subp>agraphs 7,c77i7 & 7,d7 ( p>agraph 
7#ab7 %all apply4  4  7d7 ,p5alty =     
fraudul5t ackn[l$gm5t  7#a7 ,9 g5]al ,"p
 ,i ( sub*apt] ,b ( *apt] #fh ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#fgbj;,d4 ,fraudul5t ackn[l$gm5ts )     
respect to donations ( digital assets   
7a7 ,9 g5]al ,any donee organization    
requir$ "u section #agj7;f77#bj77;,a7 to
 furni% a contemporane\s writt5         
ackn[l$gm5t to a donor :i* kn[+ly       
furni%es a false or fraudul5t           
ackn[l$gm5t1 or :i* kn[+ly fails to     
furni% su* ackn[l$gm5t 9 ! mann]1 at !  
"t1 & %[+ ! in=mation requir$ "u section
 #agj7;f77#bj71 or regulations prescrib$
 !reund]1 %all = ea* su* act1 or = ea*  
su* failure1 be subject to a p5alty     
equal to ! great] (-- 7#a7 ! product ( !
 highe/ rate ( tax specifi$ 9 section #a
 & ! sales price /at$ on ! ackn[l$gm5t1 
or  7#b7 ! gross proce$s f ! sale ( su* 

digital asset4  7b7 ,regulatory au?ority
 ,! ,secret>y %all prescribe su*        
regulations or o!r guidance z may be    
necess>y to c>ry out ! purposes ( ?is   
section4  4  7#b7 ,cl]ical am5dm5t ,!   
table ( sections ( "p ,i ( sub*apt] ,b (
 *apt] #fh ( su* ,code is am5d$ by add+ 
at ! end ! foll[+ new item3 ,sec4       
#fgbj;,d4 ,fraudul5t ackn[l$gm5ts )     
respect to donations ( digital assets4  
7e7 ,effective dates ,! am5dm5ts made by
 ?is section %all apply to contributions
 & ackn[l$gm5ts made 9 taxable ye>s     
beg9n+ aft] ! date ( enactm5t ( ?is     
,act4  #aj4 ,tax treatm5t ( c]ta9       
digital asset activities  7a7 ,9 g5]al  
,section #ggja ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by r$esignat+    
subsection 7p7 z subsection 7q7 & by    
ins]t+ aft] subsection 7o7 ! foll[+ new 
subsection3  7p7 ,tax treatm5t ( c]ta9  
digital asset activities  7#a7 ,passive 
/ak+ n a trade or bus9ess  7,a7 ,9 g5]al
 ,passive /ak+ %all n con/itute a trade 
or bus9ess1 includ+ = purposes (        

sections #eab & #hfd4  7,b7 ,passive    
/ak+ ,= purposes ( ?is subsection-- 7i7 
,9 g5]al ,! t]m passive /ak+ means /ak+ 
by an individual or entity t is a       
passive validator4  7ii7 ,passive       
validator ,! t]m passive validator      
means1 ) respect to ! acquisition ( any 
newly creat$ digital asset 7z def9$ 9   
section #adjj,w-#c7-- 7,i7 ! p]son :o   
validat$ ! digital asset transactions 9 
connection ) :i* su* digital asset 0    
issu$1 &  7,,ii7 ) respect to :i* !re   
are no d$uctible bus9ess exp5ses relat+ 
to su* validation activity4  7#b7       
,digital assets 9 inve/m5t tru/s ,=     
purposes ( ?is title1 9 ! case ( a      
digital asset inve/m5t tru/ =m$ to hold 
digital assets-- 7,a7 any p[] held by ! 
tru/ee to /ake or un/ake digital assets1
 :e!r directly or ?r\gh delegation to   
ano!r p>ty1 & to p]=m any relat$ acts to
 ex]cise su* p[] to /ake1 includ+ !     
ret5tion ( /ak+ rew>ds1 %all n be treat$
 z a p[] "u su* tru/ agreem5t to v>y !  
inve/m5t ( ! c]tificate hold]s ( su*    

tru/ & %all n o!rwise disqualify an     
entity f *>act]ization z an inve/m5t    
tru/ t is n classifi$ z a bus9ess entity
 "u ?is section1  7,b7 discretion>y p[]s
 held by a tru/ee to use o!r measures1  
includ+ a borr[+ facility1 to manage !  
tru/'s pot5tial ne$ = assets available  
to satisfy r$emptions %all n be treat$ z
 a p[] "u ! applicable tru/ agreem5t to 
v>y ! inve/m5t ( ! c]tificate hold]s (  
su* tru/1 &  7,c7 discretion>y p[]s held
 by a tru/ee to act 9 response to *anges
 to te*nology support+ ! digital assets 
held by ! tru/1 includ+ ) reg>d to /ak+1
 %all n be treat$ z a p[] "u !          
applicable tru/ agreem5t to v>y !       
inve/m5t ( ! c]tificate hold]s ( su*    
tru/4  4  7b7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbe4  #aa4 ,def9itions ,section  
#ggja ( ! ,int]nal ,rev5ue ,code (      
#aihf1 z am5d$ by ?is ,act1 is am5d$--  
7#a7 by r$esignat+ subsection 7q7 z     
subsection 7r71 &  7#b7 by ins]t+ aft]  

subsection 7p7 ! foll[+ new subsection3 
7q7 ,def9itions relat$ to digital assets
 ,= purposes ( ?is title-- 7#a7 ,digital
 asset ,! t]m digital asset means a     
digital repres5tation ( value :i* is    
record$ on a cryptographically secur$   
di/ribut$ l$g] or any simil> te*nology z
 specifi$ by ! ,secret>y4  7#b7 ,digital
 asset ex*ange ,! t]m digital asset     
ex*ange means a plat=m :i* facilitates !
 transf] ( digital assets by tak+ cu/ody
 (1 or ex]cis+ control ov]1 su* assets  
on behalf ( us]s4  7#c7 ,actively trad$ 
digital asset  7,a7 ,9 g5]al ,! t]m     
actively trad$ digital asset means1 )   
respect to any taxpay] = any taxable    
ye>1 any digital asset-- 7i7 :i* is     
fungible1  7ii7 ) a m9imum trad+ volume 
( #ej1jjj1jjj = ! two cal5d> ye>s       
imm$iately prec$+ ! sale or ex*ange (   
su* asset1  7iii7 ) a m9imum ye>ly m>ket
 capitalization ( #aj1jjj1jjj1jjj = !   
?ree cal5d> ye>s imm$iately prec$+ !    
sale or ex*ange ( su* asset1 &  7iv7 )  
respect to :i* ! taxpay] & ! relat$     

p>ties ( ! taxpay] hold no m ?an #e     
p]c5t by value or units ( su* asset4    
7,b7 ,inflation adju/m5t ,9 ! case ( any
 cal5d> ye> aft] #bjbe1 ea* ( ! doll>   
am\nts 9 subp>agraph 7,a7 %all be       
increas$ by an am\nt equal to-- 7i7 su* 
am\nt1 multipli$ by  7ii7 ! co/-(-liv+  
adju/m5t det]m9$ "u section #a7;f77#c7 =
 su* cal5d> ye>1 det]m9$ by sub/itut+   
cal5d> ye> #bjbd = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  ,any        
increase det]m9$ "u ! prec$+ s5t5ce :i* 
is n a multiple ( #ajj1jjj %all be r\nd$
 to ! ne>e/ multiple ( #ajj1jjj4  7#d7  
,eligible digital asset ,! t]m eligible 
digital asset means a digital asset t-- 
7,a7 is fungible1  7,b7 is ( a type =   
:i* a m>ket price is readily asc]ta9able
 bas$ on publicly available quotations  
on a digital asset ex*ange1  7,c7 does n
 repres5t or conf] any own]%ip int]e/1  
equity int]e/1 debt obligation1 or o!r  
f9ancial or prop]ty "r 9 any entity1    
asset1 commodity1 or ent]prise1 &  7,d7 
is design$ & functions z a m$ium (      

ex*ange1 /ore ( value1 or unit ( acc\nt1
 & is record$ & transf]r$ ?r\gh         
di/ribut$ l$g] or block*a9 te*nology4   
7#e7 ,trad$ digital asset ,! t]m trad$  
digital asset means a digital           
repres5tation ( value t-- 7,a7 is       
design$ & functions z a m$ium ( ex*ange1
 /ore ( value1 or unit ( acc\nt1  7,b7  
is record$ & transf]r$ ?r\gh di/ribut$  
l$g] or block*a9 te*nology1  7,c7 does n
 repres5t or conf] any own]%ip int]e/1  
equity int]e/1 debt obligation1 or o!r  
f9ancial or prop]ty "r 9 any entity1    
asset1 commodity1 or ent]prise1 &  7,d7 
does n d]ive its value f1 or repres5t a 
claim on1 any fiat curr5cy1 commodity1  
security1 or o!r f9ancial in/rum5t4     
7#f7 ,validation activity ,! t]m        
validation activity means /ak+1 m9+1 or 
simil> activities 9 support ( !         
validation ( digital asset transactions4
  7#g7 ,m9+ ,! t]m m9+1 :5 us$ 9        
connection ) a digital asset1 means--   
7,a7 p]=m+ computations1 or mak+        
available comput+ p[]1 9 support ( !    

validation ( digital asset transactions1
 &  7,b7 except z o!rwise provid$ by !  
,secret>y1 any sub/antially simil>      
activity4  7#h7 ,/ak+ ,! t]m /ak+1 :5   
us$ 9 connection ) a digital asset1     
means-- 7,a7 mak+ su* asset available 9 
support ( ! validation ( digital asset  
transactions by pl$g+1 deploy+1         
immobiliz+1 or lock+ to support         
validation ( transactions on a          
cryptographically secur$ di/ribut$ l$g]1
 or  7,b7 except z o!rwise provid$ by ! 
,secret>y1 any sub/antially simil>      
activity4  4  #ab4 ,/udy & report on    
relief = digital asset consum]          
transactions  7a7 ,/udy & report ,n lat]
 ?an #a ye> aft] ! date ( enactm5t ( ?is
 ,act1 ! ,secret>y %all submit to       
,congress a report describ+-- 7#a7 !    
e/imat$ compliance burd5 curr5tly impos$
 on taxpay]s by ga9 recognition         
requirem5ts = small digital asset       
transactions1 express$ 9 aggregate h\rs 
& doll>s1 & disaggregat$ by income      
level1  7#b7 ! ext5t to :i* in=mation   

report+ "u section #fjde captures       
digital asset transactions ( #bjj or    
less1 includ+ ! gap attributable to     
transactions conduct$ )\t a brok]       
int]m$i>y1  7#c7 ! adm9i/rative &       
te*nological requirem5ts necess>y = !   
,int]nal ,rev5ue ,s]vice to v]ify       
taxpay] eligibility = a de m9imis       
exclusion )9 exi/+ appropriations1  7#d7
 ! pot5tial = abuse ( a de m9imis       
exclusion1 includ+ ?r\gh transaction    
fragm5tation1 ! use ( multiple acc\nts  
or wallets1 & ! mis*>act]ization (      
inve/m5t dispositions z consum]         
transactions1 & ! me*anisms available to
 detect & det] su* abuse )\t impos+     
additional taxpay] report+ burd5s1  7#e7
 ! ext5t to :i* any de m9imis exclusion 
c\ld be implem5t$ 9 a mann] t ma9ta9s   
consi/5cy betwe5 taxpay] report+ &      
?ird-p>ty in=mation report+ "u section  
#fjde1  7#f7 any disp>ities 9 report+1  
compliance1 or en=cem5t betwe5 cu/odial 
& non-cu/odial digital asset            
transactions t w\ld arise f a de m9imis 

exclusion1  7#g7 recomm5d$ legislative  
or regulatory approa*es1 if any1 t w\ld 
provide mean+ful consum] relief :ile    
rema9+ adm9i/rable by ! ,int]nal ,rev5ue
 ,s]vice )9 exi/+ res\rces1  7#h7 ! co/ 
( additional res\rces t w\ld enable !   
,int]nal ,rev5ue ,s]vice to fully en=ce 
exi/+ laws conc]n+ digital assets1  7#i7
 ! ext5t to :i* tax report+1 compliance1
 or en=cem5t does n meet ,crypto ,asset 
,report+ ,framework 7,,c>f7 /&>ds1 )    
recomm5d$ legislative or regulatory     
approa*es1 if any1 t w\ld br+ ! ,unit$  
,/ates into compliance ) ,,c>f1 &  7#aj7
 ! ext5t ( tax avoidance risks associat$
 ) digital asset transactions1 includ+  
?r\gh noncompliance1 (f%ore activity1 or
 /ructur+ te*niques1 & ! feasibility (  
e/abli%+ a volunt>y disclosure program  
to facilitate taxpay] compliance )      
respect to su* transactions4  7b7       
,int]im guidance ,n lat] ?an #ahj days  
aft] ! date ( enactm5t ( ?is ,act1 !    
,secret>y %all issue guidance id5tify+  
categories ( digital asset transactions 

= :i* relief f ga9 or loss recognition  
may be provid$ "u exi/+ au?ority1       
includ+ :]e-- 7#a7 compliance burd5s are
 disproportionate relative to pot5tial  
tax liability1 &  7#b7 su* relief c be  
adm9i/]$ )\t und]m9+ in=mation report+  
or return mat*+4  7c7 ,s5se ( ,congress 
,x is ! s5se ( ,congress t-- 7#a7       
taxpay]s %\ld n be subject to undue     
compliance burd5s = l[-value digital    
asset transactions und]tak5 = p]sonal   
consumption1  7#b7 any de m9imis        
exclusion %\ld be design$ to provide    
mean+ful relief to us]s :ile ma9ta9+ !  
integrity ( ! ,f$]al tax sy/em1 &  7#c7 
su* relief %\ld be implem5t$ only 9 a   
mann] t is adm9i/rable )9 exi/+ ,int]nal
 ,rev5ue ,s]vice res\rces4  7d7 ,rule ( 
con/ruction ,no?+ 9 ?is section %all be 
con/ru$ to-- 7#a7 create or imply !     
exi/5ce ( a de m9imis exclusion =       
digital asset transactions1 or  7#b7    
provide indep5d5t au?ority to !         
,secret>y to implem5t su* an exclusion  
except to ! ext5t o!rwise au?oriz$ "u   

exi/+ law4  7e7 ,secret>y ,= purposes ( 
?is section1 ! t]m ,secret>y means !    
,secret>y ( ! ,treasury or ! ,secret>y's
 delegate4