,,ii  #aai? ,,congress  #a/ ,session    
,s4 #bbjg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,june #cj1 #bjbe,ms4   
,lummis introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to re=m ! treatm5t
 ( digital assets4  #a4 ,def9ition (    
digital asset ,section #ggja ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#ea7 ,digital asset  7,a7 ,9 g5]al     
,subject to subp>agraph 7,b7 & except z 
o!rwise provid$ by ! ,secret>y1 ! t]m   
digital asset means 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 ,f9ancial assets  
7i7 ,9 g5]al ,except z o!rwise provid$  
by ! ,secret>y1 9 ! case ( any digital  
asset :i* is a repres5tation ( a        
f9ancial asset :i* is itself n a digital
 asset1 su* asset-- 7,i7 %all n be      
treat$ z a digital asset1 &  7,,ii7 =   

purposes ( ?is title1 & except z o!rwise
 provid$ by law1 %all be treat$ z su*   
f9ancial asset4  7ii7 ,def9ition ,=     
purposes ( ?is subp>agraph1 z specifi$  
by ! ,secret>y1 ! t]m f9ancial asset    
means an asset t trades on e/abli%$     
m>kets or :i* is us$ z a m$ium (        
ex*ange1 /ore ( value1 or unit ( acc\nt1
 & %all exclude a paym5t /ableco9 7z    
def9$ 9 section #ajia7;a77#c774  7,c7   
,repres5tations ( o!r prop]ty ,=        
purposes ( ?is p>agraph1 z specifi$ by !
 ,secret>y pursuant to regulation1 9 !  
case ( a digital asset :i* is a         
repres5tation ( prop]ty o!r ?an a       
f9ancial asset1 su* digital asset %all  
be treat$ 9 ! same mann] z ! prop]ty :i*
 x repres5ts4  7#eb7 ,actively trad$    
digital asset ,except z o!rwise provid$ 
by ! ,secret>y1 ! t]m actively trad$    
digital asset means a fungible digital  
asset = :i* quotations are readily      
available on a digital asset ex*ange4  4
  #b4 ,de m9imis ga9 or loss f sale1    
ex*ange1 or disposition ( digital assets

  7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b (
 *apt] #a ( ! ,int]nal ,rev5ue ,code (  
#aihf is am5d$ by ins]t+ aft] section   
#aci;,i ! foll[+ new section3  #aci;,j4 
,de m9imis ga9 or loss f sale1 ex*ange1 
or disposition ( digital assets  7a7 ,9 
g5]al ,subject to subsection 7b71 gross 
income %all n include ga9 or loss f !   
sale1 ex*ange1 or disposition ( digital 
assets to pur*ase products or s]vices 9 
a p]sonal transaction 7consi/5t )       
section #ihh7;e77#c771 unless ! sale1   
ex*ange1 or disposition is =-- 7#a7 ca% 
or ca% equival5ts1 or  7#b7 o!r digital 
assets4  7b7 ,limitation  7#a7 ,9 g5]al 
,subsection 7a7 %all n apply 9 ! case ( 
any sale1 ex*ange1 or disposition =     
:i*-- 7,a7 ! total value ( su* sale1    
ex*ange1 or disposition exce$s #cjj1 or 
7,b7 ! total loss :i* w\ld o!rwise be   
recogniz$ ) respect to su* sale1        
ex*ange1 or disposition exce$s #cjj4    
7#b7 ,aggregation rule ,= purposes ( ?is
 subsection1 all sales1 ex*anges1 or    
dispositions :i* are "p ( ! same        

transaction 7or a s]ies ( relat$        
transactions7 %all be treat$ z "o sale1 
ex*ange1 or disposition4  7#c7 ,total   
ga9s ,if1 aft] apply+ subsection 7a7 to 
a transaction1 ! taxpay]'s total ga9 = !
 taxable ye> f transactions describ$ 9  
subsection 7a7 exce$s #e1jjj1 no fur!r  
exclusion %all apply = su* ye>4  7c7    
,basis ,except z o!rwise provid$ by !   
,secret>y1 subsection 7a7 %all n apply  
to a sale1 ex*ange1 or disposition (    
digital assets = :i* ! pr9cipal purpose 
( su* sale1 ex*ange1 or disposition is  
to elim9ate ga9s4  7d7 ,books & records 
,a taxpay] %all ma9ta9 books & records  
or sep>ate wallets or acc\nts 7z det]m9$
 by ! ,secret>y7 :i* di/+ui% betwe5     
sales1 ex*anges1 or dispositions (      
digital assets eligible = ! exclusion f 
gross income "u subsection 7a7 & sales1 
ex*anges1 or dispositions :i* are n     
eligible = ! exclusion4  7e7 ,inflation 
adju/m5t  7#a7 ,9 g5]al ,9 ! case ( any 
taxable ye> beg9n+ 9 a cal5d> ye> aft]  
#bjbf1 ea* doll> am\nt 9 subsection     

7b77#a7 %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> #bjbe = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  7#b7 ,r\nd+ ,any increase det]m9$
 "u p>agraph 7#a7 %all be r\nd$ to !    
ne>e/ multiple ( #aj4  7f7 ,regulations 
& guidance ,! ,secret>y may prescribe   
su* regulations or o!r guidance z may be
 necess>y to c>ry out ! purposes ( ?is  
section1 includ+-- 7#a7 requirem5ts     
relat+ to recordkeep+ & brok] in=mation 
report+1  7#b7 anti-abuse /&>ds :i* are 
consi/5t ) ! purposes ( ?is section1 :i*
 may include def9+ relat$ transactions  
to avoid un9t5d$ application ( !        
exclusion f gross income "u subsection  
7a71  7#c7 allocation ( basis &         
*>act]ization ( appreciation1 &  7#d7   
treatm5t ( mix$ transactions :i* conta9 
bo? goods or s]vices & prop]ty describ$ 
9 p>agraph 7#a71 7#b71 or 7#c7 (        

subsection 7a74  7g7 ,t]m9ation ,?is    
section %all n apply to taxable ye>s    
beg9n+ aft] ,decemb] #ca1 #bjce4  4  7b7
 ,cl]ical am5dm5t ,! table ( sections = 
"p ,,iii ( sub*apt] ,b ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#aci;,i ! foll[+ new item3 ,sec4        
#aci;,j4 ,de m9imis ga9 or loss f sale1 
ex*ange1 or disposition ( digital       
assets44  7c7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
) respect to transactions ent]$ into    
aft] ,decemb] #ca1 #bjbe4  #c4 ,tax     
treatm5t ( digital asset l5d+ agreem5ts 
& relat$ matt]s  7a7 ,9 g5]al ,section  
#ajeh ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$ by-- 7#a7 9 ! head+1 by /rik+ 
securities & ins]t+ specifi$ assets1    
7#b7 9 subsection 7a71 by /rik+         
securities 7z def9$ 9 section #abcf7;c77
 & ins]t+ specifi$ assets1 &  7#c7 /rik+
 securities ea* place x appe>s & ins]t+ 
specifi$ assets44  7b7 ,fix$ t]m        
,section #ajeh7;b77#c7 ( ! ,int]nal     

,rev5ue ,code ( #aihf is am5d$ by ins]t+
 o!r ?an z a result ( su* agreem5t be+  
fix$-t]m1 except z o!rwise provid$ by ! 
,secret>y aft] transf]r$4  7c7 ,basis   
,section #ajeh7;c7 ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+3 ,all appropriate basis        
adju/m5ts to specifi$ assets subject to 
an agreem5t "u subsection 7b7 %all be   
made1 z det]m9$ by ! ,secret>y1 includ+ 
^u ! return ( ! l5t specifi$ assets to !
 taxpay]44  7d7 ,specifi$ assets        
,section #ajeh ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subsections3  7d7 ,specifi$
 assets ,= purposes ( ?is section1 ! t]m
 specifi$ asset means-- 7#a7 a security 
7z def9$ 9 section #abcf7;c771 or  7#b7 
an actively trad$ digital asset4  7e7   
,income ,an am\nt equal to ! income :i* 
w\ld o!rwise accrue to ! l5d] b = a l5d+
 transaction "u ?is section %all be     
includ$ 9 ! gross income ( ! l5d] & ! "*
 ( su* income %all rema9 un*ang$4  7f7  
,regulations & guidance ,! ,secret>y may

 prescribe su* regulations or o!r       
guidance z may be necess>y to c>ry out !
 purposes ( ?is section1 includ+ !      
application ( ! provisions ( ?is section
 to digital asset =ks1 digital asset    
airdrops1 & fees associat$ ) digital    
asset l5d+4  7g7 ,t]m9ation ,?is section
 %all n apply to taxable ye>s beg9n+    
aft] ,decemb] #ca1 #bjce4  4  7e7       
,con=m+ am5dm5t ,! table ( sections = "p
 ,,iv ( sub*apt] ,o ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ ! item relat+ to section #ajeh 
& ins]t+ ! foll[+ new item3  ,sec4      
#ajeh4 ,transf]s ( specifi$ securities  
"u c]ta9 agreem5ts4  4  7f7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft] !
 date ( enactm5t ( ?is ,act4  #d4 ,loss 
f wa% sales ( specifi$ assets  7a7 ,9   
g5]al ,section #ajia ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  #ajia4 ,loss f wa% sales (    
specifi$ assets  7a7 ,disall[ance ( loss
 d$uction  7#a7 ,9 g5]al ,no d$uction   

%all be all[$ ) respect to any loss     
claim$ to h be5 su/a9$ f any sale or o!r
 disposition 7includ+ any t]m9ation7 (  
specifi$ assets :]e x appe>s t1 )9 a    
p]iod beg9n+ #cj days be=e ! date ( su* 
sale or o!r disposition & end+ #cj days 
aft] su* date1 ! taxpay] has-- 7,a7     
acquir$ 7by pur*ase1 by an ex*ange on   
:i* ! entire am\nt ( ga9 or loss 0      
recogniz$ by law1 or by ent]+ into7     
sub/antially id5tical specifi$ assets1  
or  7,b7 ent]$ into a contract or option
 to acquire1 or notional pr9cipal       
contract 9 respect (1 sub/antially      
id5tical specifi$ assets4  7#b7         
,exception = deal]s ,p>agraph 7#a7 %all 
n apply if-- 7,a7 ! taxpay] is a deal] 9
 specifi$ assets1  7,b7 ! loss is su/a9$
 9 a transaction made 9 ! ord9>y c\rse (
 its bus9ess z a deal]1 &  7,c7 !       
acquisition 7or ! ent]+ into ( !        
contract or option to acquire or        
notional pr9cipal contract7 :i* 7)\t    
reg>d to ?is p>agraph7 w\ld h result$ 9 
! non-d$uctibility ( ! loss 0 simil>ly  

made 9 ! ord9>y c\rse ( su* bus9ess4    
7#c7 ,exception = /ableco9s  7,a7 ,9    
g5]al ,except z o!rwise provid$ by !    
,secret>y1 p>agraph 7#a7 %all n apply to
 a loss f ! sale or disposition ( a     
paym5t /ableco9 or o!r /ableco94  7,b7  
,9 g5]al ,subject to subp>agraph 7,c71 =
 purposes ( ?is p>agraph1 ! t]m paym5t  
/ableco9 means a digital asset-- 7i7 t  
is1 or is design$ to be1 us$ z a means (
 paym5t or settlem5t1 &  7ii7 ! issu] ( 
:i*-- 7,i7 is obligat$ to conv]t1 r$eem1
 or repur*ase = a fix$ am\nt ( monet>y  
value 7n includ+ a digital asset        
d5om9at$ 9 a fix$ am\nt ( monet>y       
value71 &  7,,ii7 repres5ts t su* issu] 
w ma9ta91 or creates ! reasonable       
expectation t su* issu] w ma9ta91 a     
/able value relative to ! value ( a fix$
 am\nt ( monet>y value4  7,c7 ,exception
 ,! t]m paym5t /ableco9 %all n include a
 digital asset t is-- 7i7 a national    
curr5cy1  7ii7 a deposit 7z def9$ 9     
section #c ( ! ,f$]al ,deposit          
,insurance ,act 7#ab ,u4,s4,c4 #ahac771 

includ+ a deposit record$ us+ di/ribut$ 
l$g] te*nology1 or  7iii7 a security1 z 
def9$ 9 section #b ( ! ,securities ,act 
( #aicc 7#ae ,u4,s4,c4 #gg;b71 section  
#c ( ! ,securities ,ex*ange ,act ( #aicd
 7#ae ,u4,s4,c4 #gh;c71 or section #b ( 
! ,inve/m5t ,company ,act ( #aidj 7#ae  
,u4,s4,c4 #hj;a-#b74  7b7 ,specifi$     
assets acquir$ less ?an specifi$ assets 
sold ,if ! am\nt ( specifi$ assets      
acquir$ 7or cov]$ by ! contract or      
option to acquire or notional pr9cipal  
contract7 is less ?an ! am\nt ( specifi$
 assets sold or o!rwise dispos$ (1 !n ! 
p>ticul> specifi$ assets ! loss f ! sale
 or o!r disposition ( :i* is n d$uctible
 %all be det]m9$ "u regulations         
prescrib$ by ! ,secret>y4  7c7 ,specifi$
 assets acquir$ n less ?an specifi$     
assets sold ,if ! am\nt ( specifi$      
assets acquir$ 7or cov]$ by ! contract  
or option to acquire or notional        
pr9cipal contract7 is n less ?an ! am\nt
 ( specifi$ assets sold or o!rwise      
dispos$ (1 !n ! p>ticul> specifi$ assets

 ! acquisition ( :i* 7or ! ent]+ into ( 
! contract or option to acquire or      
notional pr9cipal contract ( :i*7       
result$ 9 ! non-d$uctibility ( ! loss   
%all be det]m9$ "u regulations prescrib$
 by ! ,secret>y4  7d7 ,adju/m5t to basis
 9 case ( wa% sale  7#a7 ,9 g5]al ,!    
basis ( ! specifi$ asset acquir$ 7or !  
contract1 option1 or notional pr9cipal  
contract ent]$ into7 %all be increas$ by
 ! am\nt ( ! d$uction disall[$ "u       
subsection 7a74  7#b7 ,rules ) respect  
to c]ta9 acquisitions  7,a7 ,9 g5]al ,9 
any case 9 :i*-- 7i7 ! taxpay] ent]s    
into a contract or option to acquire1 or
 notional pr9cipal contract 9 respect (1
 sub/antially id5tical specifi$ assets  
7)9 ! p]iod specifi$ 9 subsection 7a771 
7ii7 ! taxpay] also acquires 7)9 ! p]iod
 specifi$ 9 subsection 7a77 sub/antially
 id5tical specifi$ assets & su*         
acquisition w\ld1 b = ! ent]+ into ( !  
contract1 option1 or notional pr9cipal  
contract describ$ 9 clause 7i71 h       
trigg]$ a disall[ance "u subsection 7a71

 &  7iii7 ! contract1 option1 or        
notional pr9cipal contract matures1     
expires1 is ex]cis$1 or o!rwise t]m9ates
 )\t ! deliv]y or receipt ( money or    
prop]ty dur+ ! t]m ( ! contract1 option1
 or notional pr9cipal contract 7o!r ?an 
at ! "t ! contract1 option1 or notional 
pr9cipal contract is ent]$ into7 or ^u  
su* t]m9ation1  !n1 subject to su*      
exceptions z ! ,secret>y %all prescribe 
7includ+ ) respect to non-abusive wa%   
sale basis adju/m5t practices71 p>agraph
 7#a7 %all apply to ! sub/antially      
id5tical specifi$ assets describ$ 9     
clause 7ii7 & n to ! contract1 option1  
or notional pr9cipal contract describ$ 9
 clause 7i74  7,b7 ,special rule =      
contracts & options ,subject to su*     
exceptions z ! ,secret>y %all prescribe 
7includ+ ) respect to non-abusive wa%   
sale basis adju/m5t practices71 if !    
acquisition ( any sub/antially id5tical 
specifi$ asset is pursuant to a contract
 or option describ$ 9 subp>agraph       
7,a77i71 !n1 not)/&+ :e!r su* asset 0   

acquir$ )9 ! p]iod specifi$ 9 subsection
 7a71 p>agraph 7#a7 %all apply to !     
sub/antially id5tical specifi$ asset    
acquir$ pursuant to ! contract or option
 & n to ! contract or option4  7e7      
,c]ta9 %ort sales ( specifi$ assets &   
contracts ,to sell ,rules simil> to !   
rules ( subsection 7a7 %all apply to any
 loss realiz$ on ! clos+ ( a %ort sale (
 7or ! sale1 disposition1 or t]m9ation (
 a contract or option to sell or a %ort 
notional pr9cipal contract 9 respect (7 
specifi$ assets if1 )9 a p]iod beg9n+   
#cj days be=e ! date ( su* clos+ & end+ 
#cj days aft] su* date1 ano!r su* %ort  
sale ( 7or contract or option to sell or
 %ort notional pr9cipal contract 9      
respect (7 sub/antially id5tical        
specifi$ assets 0 ent]$ into by !       
taxpay]4  7f7 ,ca% settlem5t ,?is       
section %all n fail to apply to a       
contract or option to acquire or sell   
specifi$ assets solely by reason ( !    
fact t ! contract or option settles 9   
7or c\ld be settl$ 97 ca% or prop]ty o!r

 ?an su* specifi$ assets4  7g7 ,specifi$
 asset ,= purposes ( ?is section1 ! t]m 
specifi$ asset means any ( ! foll[+3    
7#a7 ,any security 7z def9$ 9 section   
#dge7;c77#b771 includ+ contracts or     
options to acquire or sell securities4  
7#b7 ,except z o!rwise provid$ by !     
,secret>y-- 7,a7 any digital asset1     
7,b7 any notional pr9cipal contract )   
respect to any digital asset describ$ 9 
subp>agraph 7,a71 &  7,c7 any evid5ce ( 
an int]e/ 91 or a d]ivative in/rum5t 91 
any digital asset describ$ 9 subp>agraph
 7,a7 or 7,b71 includ+ any option1 =w>d 
contract1 futures contract1 %ort        
position1 & any simil> in/rum5t 9 su* a 
digital asset4  7h7 ,regulations ,!     
,secret>y may prescribe su* regulations 
or o!r guidance z may be necess>y to    
c>ry out ! purposes ( ?is section1      
includ+ relat+ to abusive basis adju/m5t
 practices4  4  7b7 ,con=m+ am5dm5ts    
7#a7 ,section #abbc7c7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$-- 7,a7 by
 /rik+ /ock or securities ! fir/ place x

 appe>s & ins]t+ specifi$ assets 7z     
def9$ 9 section #ajia7;g771  7,b7 by    
/rik+ /ock or securities ! second & ?ird
 place x appe>s & ins]t+ specifi$ assets
 7z s def9$71 &  7,c7 by /rik+ 7or !    
contract or option to acquire :i*7 &    
ins]t+ 7or ! ent]+ into ( a contract or 
option to acquire or notional pr9cipal  
contract 9 respect ( :i*74  7#b7        
,section #fjde7;g77#b77;,b7 ( su* ,code 
is am5d$-- 7,a7 9 clause 7i77,i7-- 7i7  
by /rik+ security 7o!r ?an /ock & ins]t+
 cov]$ security 7o!r ?an /ock1 &  7ii7  
by /rik+ /ock sold or transf]r$ & ins]t+
 cov]$ security sold or transf]r$1 &    
7,b7 9 clause 7ii7-- 7i7 by /rik+ /ock  
or securities & ins]t+ specifi$ assets1 
&  7ii7 by /rik+ id5tical securities &  
ins]t+ id5tical specifi$ assets 7z def9$
 9 section #ajia7;g774  7#c7 ,! table ( 
sections = "p ,,vii ( sub*apt] ,o (     
*apt] #a fo su* ,code is am5d$ by /rik+ 
! item relat+ to section #ajia & ins]t+ 
! foll[+ new item3 ,sec4 #ajia4 ,loss f 
wa% sales ( specifi$ assets44  7c7      

,t]m9ation ,! am5dm5ts made by ?is      
section %all be repeal$ on ,decemb] #ca1
 #bjce4  7d7 ,effective date ,! am5dm5ts
 made by ?is section %all apply to      
sales1 dispositions1 & t]m9ations 9     
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbe4  #e4 ,m>k-to-m>ket election  7a7 
,9 g5]al ,section #dge ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 r$esignat+ subsection 7g7 z subsection 
7h71 &  7#b7 by ins]t+ aft] subsection  
7f7 ! foll[+ new subsection3  7g7       
,election ( m>k ,to m>ket = deal]s &    
trad]s 9 specifi$ assets  7#a7 ,deal] 9 
specifi$ assets  7,a7 ,9 g5]al ,9 ! case
 ( a deal] 9 specifi$ assets :o elects !
 application ( ?is p>agraph1 ?is section
 %all apply to su* assets held by su*   
deal] 9 ! same mann] z ?is section      
applies to securities held by a deal] 9 
securities4  7,b7  ,revocation  ,an     
election "u subp>agraph 7,a7 may be made
 )\t ! cons5t ( ! ,secret>y4 ,an        
election1 once made1 %all apply to !    
taxable ye> = :i* made & all subsequ5t  

taxable ye>s unless revok$ ) ! cons5t ( 
! ,secret>y4  7#b7  ,trad] 9 specifi$   
assets  ,9 ! case ( a p]son :o is engag$
 9 a trade or bus9ess z a trad] 9       
specifi$ assets & :o elects to h ?is    
p>agraph apply to su* trade or bus9ess z
 a trad] 9 su* assets1 subsection       
7f77#a7 %all apply to specifi$ 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  ,! application ( ?is       
subsection %all be limit$ to specifi$   
assets :i* are treat$ z actively trad$4 
7#d7  ,def9itions  ,= purposes ( ?is    
subsection-- 7,a7 ,specifi$ asset ,! t]m
 specifi$ asset means--  7i7 a digital  
asset1  7ii7 any notional pr9cipal      
contract ) respect to a digital asset   
describ$ 9 clause 7i71 or  7iii7 any    
evid5ce ( an int]e/ 91 or a d]ivative   
in/rum5t 91 an asset describ$ 9 clause  
7i7 or 7ii71 includ+ any option1 =w>d   
contract1 futures contract1 %ort        

position1 or simil> in/rum5t 9 su*      
digital asset4  7,b7  ,deal] 9 specifi$ 
assets  ,! t]m deal] 9 specifi$ assets  
means a taxpay] :i*--  7i7 regul>ly     
pur*ases specifi$ assets f1 or sells    
specifi$ assets to1 cu/om]s 9 ! ord9>y  
c\rse ( a trade or bus9ess1 or  7ii7    
regul>ly (f]s to ent] into1 assume      
(fset1 assign1 or o!rwise t]m9ate       
positions 9 specifi$ assets ) cu/om]s 9 
! ord9>y c\rse ( a trade or bus9ess4    
7#e7  ,regulations & guidance  ,!       
,secret>y may prescribe su* regulations 
or o!r guidance z may be necess>y to    
c>ry out ! purposes ( ?is subsection4   
7#f7  ,t]m9ation  ,?is subsection %all n
 apply to taxable ye>s beg9n+ aft]      
,decemb] #ca1 #bjce4  4  7b7 ,effective 
date ,! am5dm5ts made by ?is section    
%all apply to sales & ex*anges 9 taxable
 ye>s beg9n+ aft] ! date ( enactm5t (   
?is ,act4  #f4 ,digital asset m9+ & /ak+
  7a7 ,9 g5]al ,section #dea ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           

subsection3  7l7 ,def]ral ( income      
recognition = digital asset activities  
7#a7 ,9 g5]al ,9 ! case ( a taxpay] :o  
engages 9 validation ( digital asset    
transactions 7includ+ digital asset m9+ 
& /ak+71 any income relat+ to su*       
activities-- 7,a7 %all n be includ$ 9 ! 
gross income ( ! taxpay] until ! taxable
 ye> ( ! sale or o!r disposition ( !    
assets produc$ or receiv$ 9 connection )
 ! m9+ or /ak+ activities1 &  7,b7 %all 
be treat$ z ord9>y income4  7#b7        
,regulations & guidance ,! ,secret>y may
 prescribe su* regulations or o!r       
guidance z may be necess>y to c>ry out !
 purposes ( ?is subsection1 includ+     
relat+ to ! resid5ce ( a recipi5t ( a   
digital asset =k or digital asset       
airdrop4  7#c7 ,t]m9ation ,?is          
subsection %all n apply to taxable ye>s 
beg9n+ aft] ,decemb] #ca1 #bjce4  4  7b7
 ,s\rce ( income relat$ to consid]ation 
receiv$ ,section #hfc ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7f7  

,s\rce ( income relat$ to consid]ation  
receiv$  7#a7 ,9 g5]al ,! s\rce ( any   
income relat$ to validation ( digital   
asset transactions %all be det]m9$ by   
ref]5ce to ! resid5ce ( ! recipi5t at ! 
"t ( receipt4  7#b7 ,regulations &      
guidance ,! ,secret>y may prescribe su* 
regulations or o!r guidance z may be    
necess>y to c>ry out ! purposes ( ?is   
subsection4  7#c7 ,t]m9ation ,?is       
subsection %all n apply to taxable ye>s 
beg9n+ aft] ,decemb] #ca1 #bjce4  4  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ! date ( enactm5t ( ?is     
,act4  #g4 ,*>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      
,contributions to private f\ndation     
,section #agj7;e77#e7 ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 
! head+1 by ins]t+ or digital assets    

aft] /ock1  7#b7 9 subp>agraph 7,a71 by 
ins]t+ or qualifi$ appreciat$ digital   
assets aft] qualifi$ appreciat$ /ock1 & 
7#c7 by add+ at ! end ! foll[+ new      
subp>agraph3  7,d7 ,qualifi$ appreciat$ 
digital asset  7i7 ,9 g5]al ,= purposes 
( ?is p>agraph1 ! t]m qualifi$          
appreciat$ digital asset means a digital
 asset-- 7,i7 :i* is actively trad$1 &  
7,,ii7 :i* is capital ga9 prop]ty 7z    
def9$ 9 subsection 7b77#a77;,c77iv774   
7ii7 ,regulations & guidance ,!         
,secret>y may prescribe su* regulations 
or o!r guidance z may be necess>y to    
c>ry out ! purposes ( ?is subp>agraph4  
7iii7 ,t]m9ation ,! t]m qualifi$        
appreciat$ digital asset %all n apply to
 any contribution made 9 taxable ye>s   
beg9n+ aft] ,decemb] #ca1 #bjce4  4  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to contributions    
made 9 taxable ye>s beg9n+ aft] ! date (
 enactm5t ( ?is ,act4