,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #iagb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,june #h1 #bjbf,mr4   
,arr+ton introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to apply ! wa% sale rules
 & con/ructive sale rules to digital    
assets1 & = o!r purposes4  #a4 ,%ort    
title2 etc  7a7 ,%ort title ,?is ,act   
may be cit$ z ! ,apply+ ,exi/+ ,tax     
,anti-,abuse ,rules to ,digital ,assets 
,act4  7b7 ,ref]5ces ,except z o!rwise  
expressly provid$1 :5ev] 9 ?is ,act an  
am5dm5t or repeal is express$ 9 t]ms (  
an am5dm5t to1 or repeal (1 a section or
 o!r provision1 ! ref]5ce %all be       
consid]$ to be made to a section or o!r 
provision ( ! ,int]nal ,rev5ue ,code (  
#aihf4  7c7 ,table ( cont5ts ,! table ( 
cont5ts = ?is ,act is z foll[s3 ,sec4   
#a4 ,%ort title2 etc4 ,sec4 #b4         
,application ( wa% sale rules to digital
 assets4 ,sec4 #c4 ,application (       
con/ructive sale rules to digital       

assets4 ,sec4 #d4 ,def9itions4 ,sec4 #e4
 ,rules ( con/ruction4  #b4 ,application
 ( wa% sale rules to digital assets  7a7
 ,9 g5]al ,section #ajia 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 is am5d$ by add+ at ! end ! foll[+
 new subsection3  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   
asset o!r ?an a qualifi$ ,u4,s4 doll>   
/ableco94  7#b7 ,contracts & options    
,except z o!rwise provid$ 9 regulations1
 ! t]m specifi$ asset includes any      
contract or option to acquire or sell   
any specifi$ asset describ$ 9 p>agraph  
7#a74  7#c7 ,treatm5t ( tok5iz$ digital 
assets z sub/antially id5tical to an    
economically equival5t /ock or security 
,a tok5iz$ digital asset 7& a wrapp$    
digital asset ) respect to :i* ! ref]5ce
 digital asset is a trad$ digital asset7

 %all be treat$ z sub/antially id5tical 
to any /ock1 security1 or digital asset 
if su* tok5iz$ digital asset 7or su*    
wrapp$ digital asset7 is economically   
equival5t to su* /ock1 security1 or     
digital asset4  7#d7 ,functional curr5cy
 o!r ?an ! doll> ,9 ! case ( any taxpay]
 or qualifi$ bus9ess unit 7z def9$ 9    
section #ihi7;a771 a qualifi$ ,u4,s4    
doll> /ableco9 %all n be treat$ z a     
qualifi$ ,u4,s4 doll> /ableco9 =        
purposes ( p>agraph 7#a77;,b7 if su*    
taxpay] or qualifi$ bus9ess unit uses a 
functional curr5cy o!r ?an ! doll>4  4  
7c7 ,exception = c]ta9 acquisitions (   
digital assets acquir$ 9 connection )   
validation ( digital asset transactions 
,section #ajia1 z am5d$ by subsection   
7b71 is am5d$ by add+ at ! end ! foll[+ 
new subsection3  7h7 ,exception = c]ta9 
acquisitions ( digital assets acquir$ 9 
connection ) ! validation ( digital     
asset transactions ,! acquisition ( a   
digital asset %all n be tak5 into acc\nt
 "u ?is section if su* digital asset is 

acquir$ 9 connection ) ! validation (   
digital asset transactions 7includ+     
digital asset validation support+       
activities74  4  7d7 ,con=m+ am5dm5ts   
7#a7 ,section #ajia7;a7 is am5d$ by     
/rik+ ! la/ s5t5ce4  7#b7 ,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        
8specifi$ asset futures contract0 has ! 
mean+ provid$ by section #abcd;,b7c74  4

  7#c7 ,! head+ ( section #ajia is am5d$
 by /rik+ /ock or securities & ins]t+   
specifi$ assets4  7#d7 ,! head+s (      
subsections 7b71 7c71 & 7d7 ( section   
#ajia are ea* am5d$ by /rik+ ,/ock ea*  
place x appe>s & ins]t+ ,specifi$       
,assets4  7#e7 ,! 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  7#f7 ,section         
#cab7;f77#a7 is am5d$ by /rik+ /ock or  
securities & ins]t+ specifi$ assets4    
7#g7 ,section #abef7;f77#e7 is am5d$ by 
/rik+ /ock or securities & ins]t+       
specifi$ assets4  7#h7 ,section         
#fjde7;g77#b77;,b77ii7 is am5d$--  7,a7 
by /rik+ /ock or securities & ins]t+    
specifi$ assets1 &  7,b7 by /rik+       
id5tical securities & ins]t+ id5tical   
specifi$ assets4  7e7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to dispositions aft] ! date ( !        
introduction ( ?is ,act4  7f7           
,transition rule relat+ to brok] report+

 ,= purposes ( section #fjde ( !        
,int]nal ,rev5ue ,code ( #aihf1 9 ! case
 ( ! sale or o!r disposition be=e       
,janu>y #a1 #bjbh1 ( a digital asset to 
:i* section #ajia w\ld n h appli$ b = ! 
am5dm5ts made by ?is section1 ! cu/om]'s
 adju/$ basis may be det]m9$ )\t reg>d  
to section #ajia ( su* ,code4  #c4      
,application ( con/ructive sale rules to
 digital assets  7a7 ,9 g5]al ,section  
#abei7;b77#a7 is am5d$ by ins]t+ 1      
digital asset 7o!r ?an a qualifi$ ,u4,s4
 doll> /ableco97 aft] debt in/rum5t4    
7b7 ,application ( exception = sales (  
nonpublicly trad$ prop]ty ,section      
#abei7;c77#b7 is am5d$ by ins]t+ or     
widely trad$ digital asset aft]         
m>ketable security 7z def9$ 9 section   
#dec7;f774  7c7 ,treatm5t ( tok5iz$     
digital assets z sub/antially id5tical  
to economically equival5t f9ancial      
prop]ty ,section #abei7;c7 is am5d$ by  
add+ at ! end ! foll[+ new p>agraph3    
7#e7 ,treatm5t ( tok5iz$ digital assets 
z sub/antially id5tical to economically 

equival5t f9ancial prop]ty ,a tok5iz$   
digital asset %all be treat$ z          
sub/antially id5tical to any /ock1 debt 
in/rum5t1 or p>tn]%ip int]e/ if su*     
tok5iz$ digital asset is economically   
equival5t to su* /ock1 debt in/rum5t1 or
 p>tn]%ip int]e/4  4  7d7 ,functional   
curr5cy o!r ?an ! doll> ,section        
#abei7;e7 is am5d$ by add+ at ! end !   
foll[+ new p>agraph3  7#d7 ,qualifi$    
,u4,s4 doll> /ableco9s & functional     
curr5cy o!r ?an ! doll> ,9 ! case ( any 
taxpay] or qualifi$ bus9ess unit 7z     
def9$ 9 section #ihi7;a771 a qualifi$   
,u4,s4 doll> /ableco9 7det]m9$ )\t reg>d
 to ?is p>agraph7 %all n be treat$ z a  
qualifi$ ,u4,s4 doll> /ableco9 =        
purposes ( ?is section if su* taxpay] or
 qualifi$ bus9ess unit uses a functional
 curr5cy o!r ?an ! doll>4  4  7e7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to con/ructive sales 
aft] ! date ( ! introduction ( ?is ,act4
  #d4 ,def9itions ,section #ggja is     
am5d$--  7#a7 by r$esignat+ subsection  

7p7 z subsection 7q71 &  7#b7 by ins]t+ 
aft] subsection 7o7 ! foll[+ new        
subsection3  7p7 ,def9itions relat$ to  
digital assets ,= purposes ( ?is title--
 7#a7 ,digital asset ,! t]m digital     
asset means1 except z o!rwise provid$ by
 ! ,secret>y1 any 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 ,trad$ digital asset ,!
 t]m trad$ digital asset means1 except z
 o!rwise provid$ by ! ,secret>y to      
prev5t abuse1 any digital asset if--    
7,a7 su* asset is fungible1  7,b7       
quotations ( su* asset are readily      
available on an ex*ange 7or1 9 ! case ( 
an ex*ange t does n provide quotations1 
su* quotations are readily asc]ta9able71
 &  7,c7 su* asset is ei!r--  7i7 n a   
tok5iz$ digital asset1 or  7ii7 a wrapp$
 digital asset ) respect to :i* !       
ref]5ce digital asset is a trad$ digital
 asset4  7#c7 ,widely trad$ digital     
asset  7,a7 ,9 g5]al ,! t]m widely trad$

 digital asset means1 ) respect to any  
taxpay] = any taxable ye> & except z    
o!rwise provid$ by ! ,secret>y to prev5t
 abuse1 any trad$ digital asset if-- 7i7
 quotations = su* asset 7 readily       
available on an ex*ange = ! entire      
cal5d> ye> :i* ends 9 or ) ! taxable ye>
 prec$+ su* taxable ye>1  7ii7 ! m>ket  
capitalization ( su* asset exce$$       
#ejj1jjj1jjj at sub/antially all times  
dur+ su* cal5d> ye>1 &  7iii7 n m ?an   
#aj p]c5t ( ! units ( su* asset 7 own$1 
directly or indirectly1 by ! taxpay] or 
any p]son describ$ ) respect to !       
taxpay] "u section #bfg7;b7 7appli$ )\t 
reg>d to section #bfg7;c77#c77 or       
section #gjg7;b77#a7 at any "t dur+ su* 
taxable ye> or su* prec$+ taxable ye>4  
7,b7 ,special rule = wrapp$ digital     
assets ,9 ! case ( any wrapp$ digital   
asset1 except z o!rwise provid$ by !    
,secret>y to prev5t abuse1 su* asset    
%all be treat$ z a widely trad$ digital 
asset if1 & only if1 ! ref]5ce digital  
asset ) respect to su* wrapp$ digital   

asset is a widely trad$ digital asset4  
7,c7 ,au?ority to ensure reliable price 
discov]y ,= purposes ( subp>agraphs 7,a7
 & 7,b71 ! t]m prev5t abuse includes !  
exclusion ( assets t lack reliable price
 discov]y or t ! ,secret>y det]m9es are 
at risk ( price manipulation4  7,d7     
,au?ority to adju/ requirem5ts ,!       
,secret>y may1 by regulation1 provide   
requirem5ts t apply 9 lieu ( "o or m ( !
 requirem5ts ( clauses 7i7 ?r\gh 7iii7 (
 subp>agraph 7,a7 if ! ,secret>y        
det]m9es t due to *anges 9 m>ket        
conditions 7includ+ by reason ( !       
enactm5t ( ,f$]al digital asset m>ket   
/ructure legislation7 t su* alt]native  
requirem5ts w\ld m effectively or       
effici5tly id5tify trad$ digital assets 
= :i* !re is consi/5t & reliable price  
discov]y4  7,e7 ,inflation adju/m5t ,9 !
 case ( any cal5d> ye> aft] #bjbg1 !    
#ejj1jjj1jjj am\nt 9 subp>agraph        
7,a77ii7 %all be increas$ by an am\nt   
equal to--  7i7 su* doll> 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> #bjbf = 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  
,tok5iz$ digital asset ,! t]m tok5iz$   
digital asset means any digital asset   
7o!r ?an any qualifi$ ,u4,s4 doll>      
/ableco97 if m ?an an insignificant     
portion ( ! value ( su* digital asset is
 relat$ to any?+ o!r ?an ! op]ation ( ! 
cryptographically secur$ di/ribut$ l$g] 
on :i* su* digital asset is record$4    
7#e7 ,wrapp$ digital asset ,! t]m wrapp$
 digital asset means1 except z o!rwise  
provid$ by ! ,secret>y to prev5t abuse1 
any digital asset if su* asset--  7,a7  
is r$eemable on dem&1 on a "o-=-"o      
basis1 = ano!r digital asset1 &  7,b7 is
 record$ on a cryptographically secur$  
di/ribut$ l$g] o!r ?an !                
cryptographically secur$ di/ribut$ l$g] 
on :i* ! digital asset ref]r$ to 9      

subp>agraph 7,a7 is record$4  7#f7      
,ref]5ce digital asset  7,a7 ,9 g5]al ,!
 t]m ref]5ce digital asset means1 )     
respect to any wrapp$ digital asset1 !  
digital asset ref]r$ to 9 p>agraph      
7#d77;,a74  7,b7 ,special rule =        
rewrapp+s ,if1 b = ?is subp>agraph1 !   
ref]5ce digital asset ) respect to any  
wrapp$ digital asset w\ld be a wrapp$   
digital asset 7h]eaft] ref]r$ to 9 ?is  
p>agraph z ! l[]-ti] wrapp$ digital     
asset7--  7i7 subp>agraph 7,a7 %all be  
appli$ ) respect to su* l[]-ti] wrapp$  
digital asset1 &  7ii7 ! ref]5ce digital
 asset ) respect to su* l[]-ti] wrapp$  
digital asset %all be treat$ z ! ref]5ce
 digital asset ( su* wrapp$ digital     
asset4  7,c7 ,multiple wrapp+s ,if1 aft]
 ! application ( subp>agraph 7,b71 !    
ref]5ce digital asset ) respect to !    
l[]-ti] wrapp$ digital asset is a wrapp$
 digital asset1 su* subp>agraph %all be 
reappli$ by treat+ su* l[]-ti] wrapp$   
digital asset z ! wrapp$ digital asset4 
7#g7 ,/ableco9  7,a7 ,qualifi$ ,u4,s4   

doll> /ableco9 ,! t]m qualifi$ ,u4,s4   
doll> /ableco9 means any ,u4,s4 doll>   
/ableco9 :i* is issu$ by--  7i7 a       
p]mitt$ paym5t /ableco9 issu] 7z def9$ 9
 section #b7bc7 ( ! ,,g5ius ,act1 z 9   
effect on ! date ( ! enactm5t ( ?is     
p>agraph71 or  7ii7 a =eign paym5t      
/ableco9 issu] 7z def9$ 9 section #b7ab7
 ( ! ,,g5ius ,act1 z s 9 effect7 :i* is 
p]mitt$ "u su* ,act 7z s 9 effect7 to   
(f]1 sell1 or o!rwise make available su*
 ,u4,s4 doll> /ableco9 9 ! ,unit$       
,/ates4  7,b7 ,u4,s4 doll> /ableco9 ,!  
t]m ,u4,s4 doll> /ableco9 means a paym5t
 /ableco9 z def9$ 9 section #b7bb7 ( !  
,,g5ius ,act 7z 9 effect on ! date ( !  
enactm5t ( ?is p>agraph7 appli$ by      
sub/itut+ doll>s = monet>y value ea*    
place x appe>s 9 su* section4  7,c7     
,publication ( li/ ,! ,secret>y %all1 to
 ! ext5t feasible1 regul>ly publi% a li/
 ( qualifi$ ,u4,s4 doll> /ableco9s4     
7,d7 ,limit$ au?ority to treat /ableco9s
 z money ,! ,secret>y may issue su*     
regulations or o!r guidance z may be    

necess>y or appropriate to 7except z    
o!rwise expressly provid$ 9 ?is title7--
 7i7 treat qualifi$ ,u4,s4 doll>        
/ableco9s z doll>s1 &  7ii7 treat o!r   
/ableco9s z curr5cy if su* treatm5t w\ld
 increase ,f$]al rev5ues4  7#h7 ,digital
 asset transaction ,! t]m digital asset 
transaction means any transf] ( a       
digital asset record$ on !              
cryptographically secur$ di/ribut$ l$g] 
7or simil> te*nology7 ref]r$ to 9       
p>agraph 7#a74  7#i7 ,digital asset     
validation support+ activities ,! t]m   
digital asset validation support+       
activities means /ak+1 m9+1 or simil>   
activities 9 support ( ! validation (   
digital asset transactions4  7#aj7      
,validation ,! t]m validate1 & any      
d]ivative ( su* t]m 7includ+            
validation71 :5 us$ 9 connection ) a    
digital asset transaction1 includes !   
processes ( propos+ transactions =      
validation & v]ify+ ! validation (      
transactions4  7#aa7 ,/ak+ ,! t]m /ak+1 
:5 us$ 9 connection ) a digital asset1  

means-- 7,a7 mak+ su* asset available 9 
support ( ! validation ( digital asset  
transactions1 &  7,b7 except z o!rwise  
provid$ by ! ,secret>y1 any sub/antially
 simil> activity4  7#ab7 ,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  4  #e4 ,rules (      
con/ruction  7a7 ,no inf]5ce ) respect  
to application ( o!r provisions ( law   
,except z o!rwise expressly provid$ by  
?is ,act 7or an am5dm5t made by ?is     
,act7 ) respect to ! application ( "o or
 m provisions ( ! ,int]nal ,rev5ue ,code
 ( #aihf1 no?+ 9 ?is ,act 7or any       
am5dm5t made by ?is ,act7 %all be       
con/ru$ to create an inf]5ce t a digital
 asset does or does n con/itute a       
security1 a commodity1 debt1 equity1    
/ock1 a p>tn]%ip int]e/1 or an int]e/ 9 
a tru/1 = purposes ( any provision (    

law4  7b7 ,no inf]5ce ) respect to prior
 p]iods ,no provision ( ?is ,act 7or any
 am5dm5t made by ?is ,act7 %all be      
con/ru$ to create any inf]5ce ) respect 
to ! prop] application ( any provision (
 ! ,int]nal ,rev5ue ,code ( #aihf )     
respect to any p]iod be=e ! p]iod to :i*
 su* provision or am5dm5t applies4