,,ii  #aai? ,,congress  #b;d ,session   
,s4 #efaf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #cj1         
#bjbf,mr4 ,da9es 7= himself1 ,ms4       
,lummis1 ,mr4 ,mor5o1 & ,mr4 ,scott (   
,s\? ,c>ol9a7 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 
,%ort title2 etc  7a7 ,%ort title ,?is  
,act may be cit$ z ! ,align+ ,digital   
,assets ) ,pr9ciples ( ,taxation ,act or
 ! ,,adapt ,act4  7b7 ,table ( cont5ts  
,! table ( cont5ts ( ?is ,act is z      
foll[s3 ,sec4 #a4 ,%ort title2 etc4,sec4
 #b4 ,nonrecognition ( ga9 or loss on   
c]ta9 sales1 ex*anges1 or dispositions (
 /ableco9s4,sec4 #c4 ,m>k to m>ket      
election4,sec4 #d4 ,s\rce rules =       
digital asset validation                
activities4,sec4 #e4 ,c]ta9 trad+ 9     
digital assets n treat$ z a trade or    
bus9ess )9 ! ,unit$ ,/ates4,sec4 #f4    
,transf] ( digital assets "u c]ta9      

agreem5ts4,sec4 #g4 ,application ( wa%  
sale rules to digital assets4,sec4 #h4  
,treatm5t ( tru/s & publicly trad$      
p>tn]%ips hold+ digital assets4,sec4 #i4
 ,application ( con/ructive sale rules  
to digital assets4,sec4 #aj4 ,*>itable  
contributions ( widely trad$ digital    
assets4,sec4 #aa4 ,treatm5t ( de m9imis 
digital asset network fees4,sec4 #ab4   
,treatm5t ( income f qualifi$ digital   
asset validation activity by tax-exempt 
entities4,sec4 #ac4 ,application (      
regi/ration-requir$ obligation          
rules4,sec4 #ad4 ,treatm5t ( c]ta9 =eign
 entities e/abli%$ 9 connection )       
dec5traliz$ autonom\s                   
organizations4,sec4 #ae4 ,def9itions4   
#b4 ,nonrecognition ( ga9 or loss on    
c]ta9 sales1 ex*anges1 or dispositions (
 /ableco9s  7a7 ,9 g5]al ,"p ,,iii (    
sub*apt] ,o ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #ajcc ! foll[+ new        
section3  #ajcd4 ,c]ta9 sales1 ex*anges1
 or dispositions ( /ableco9s  7a7 ,9    

g5]al ,no ga9 or loss %all be recogniz$ 
on ! sale1 ex*ange1 or disposition (    
cov]$ paym5t /ableco9s to pur*ase       
products or s]vices4  7b7 ,def9itions   
7#a7 ,cov]$ paym5t /ableco9 ,! t]m cov]$
 paym5t /ableco9 means a qualifi$ ,u4,s4
 doll> /ableco9 :i*-- 7,a7 0 id5tifi$ 9 
! mo/ rec5t report publi%$ by !         
,secret>y "u p>agraph 7#b7 be=e ! sale1 
ex*ange1 or disposition ( su* /ableco91 
&  7,b7 0 acquir$ by ! taxpay] at a     
price )9 #c p]c5t ( #a4jj4  7#b7        
,id5tification by ,treasury ,n less     
frequ5tly ?an e #c mon?s1 ! ,secret>y   
%all make publicly available a report   
id5tify+ ea* qualifi$ ,u4,s4 doll>      
/ableco9 t1 dur+ ! #ab-mon? p]iod end+  
on ! la/ day ( ! prec$+ mon?1 0 actively
 trad$ at a price )9 #c p]c5t ( #a4jj4  
7c7 ,exclusions  7#a7 ,trade or bus9ess 
,subsection 7a7 %all n apply to ! sale1 
ex*ange1 or disposition ( a cov]$ paym5t
 /ableco9 by-- 7,a7 a trad]1 brok]1 or  
deal] 9 qualifi$ ,u4,s4 doll> /ableco9s1
 or  7,b7 to ! ext5t provid$ by !       

,secret>y1 any p]son 9 a trade or       
bus9ess :i* is sub/antially simil> to a 
trade or bus9ess describ$ 9 subp>agraph 
7,a74  7#b7 ,functional curr5cy o!r ?an 
,u4,s4 doll> ,subsection 7a7 %all n     
apply to any taxpay] or qualifi$ bus9ess
 unit 7z def9$ 9 section #ihi7;a77 t    
uses a functional curr5cy 7z def9$ 9    
section #ihe7;b77 o!r ?an ! doll>4  7d7 
,books & records ,9 su* =m & mann] z !  
,secret>y may prescribe1 a taxpay] %all 
ma9ta9 books & records suffici5t to     
di/+ui% sales1 ex*anges1 or dispositions
 ( cov]$ paym5t /ableco9s eligible =    
nonrecognition "u subsection 7a7 f      
transactions :i* are n eligible "u su*  
subsection4  7e7 ,regulations & guidance
 ,! ,secret>y %all prescribe su*        
regulations or o!r guidance z may be    
necess>y or appropriate to c>ry out !   
purposes ( ?is section1 includ+-- 7#a7  
requirem5ts relat+ to recordkeep+ &     
brok] in=mation report+1 &  7#b7        
allocation ( basis & *>act]ization ( !  
asset & any ga9 or loss4  4  7b7        

,exemption f in=mation report+ ,section 
#fjde ( su* ,code is am5d$ by add+ at ! 
end ! foll[+ new subsection3  7i7       
,exemption = c]ta9 digital asset        
transactions  7#a7 ,cov]$ paym5t        
/ableco9s ,9 ! case ( ! sale1 ex*ange1  
or disposition ( any cov]$ paym5t       
/ableco9 = :i* no ga9 or loss is        
recogniz$ "u section #ajcd7;a71 no      
return %all be requir$ "u subsection    
7a74  7#b7 ,regulations ,! ,secret>y    
%all prescribe su* regulations or o!r   
guidance z may be necess>y or           
appropriate to c>ry out ?is subsection1 
includ+ rules "u :i* a brok]-- 7,a7 may 
rely on in=mation or c]tifications      
provid$ by a cu/om] = purposes ( det]m9+
 :e!r any applicable requirem5ts "u     
section #ajcd h be5 satisfi$1  7,b7 %all
 n be requir$ to det]m9e :e!r !         
requirem5t "u section #ajcd7;b77#a77;,b7
 has be5 satisfi$ ) respect to a        
qualifi$ ,u4,s4 doll> /ableco9 if !     
acquisition ( su* qualifi$ ,u4,s4 doll> 
/ableco9 0 n effect$ by su* brok]1 &    

7,c7 %all n be requir$ to det]m9e any   
fact t is n kn[n or reasonably available
 to su* brok]4  4  7c7 ,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 #ajcc !  
foll[+ new item3 ,sec4 #ajcd4 ,c]ta9    
sales1 ex*anges1 or dispositions (      
/ableco9s44  7d7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
) respect to transactions ent]$ into    
aft] ,decemb] #ca1 #bjbf4  #c4 ,m>k to  
m>ket election  7a7 ,9 g5]al ,section   
#dge ( ! ,int]nal ,rev5ue ,code ( #aihf 
is am5d$--  7#a7 9 subsection 7d71 by   
add+ at ! end ! foll[+ new p>agraphs3   
7#d7  ,treatm5t ( cov]$ digital assets  
:i* are securities or commodities  ,9 ! 
case ( any cov]$ digital asset :i* is a 
security or commodity 7det]m9$ )\t reg>d
 to ?is p>agraph71 su* cov]$ digital    
asset %all n be treat$ z a security or  
commodity = purposes ( subsections 7b7  
?r\gh 7g74  7#e7  ,adju/m5ts            

attributable to m>k to m>ket treatm5t ( 
securities1 commodities1 or cov]$       
digital assets  ,9 ! case ( an adju/m5t 
describ$ 9 section #dha7;a7 by reason ( 
! application ( subsection 7a71 7e71    
7f71 or 7g7 ( ?is section1 ! "* ( any   
income or loss ) respect to any prop]ty 
z a result ( su* adju/m5t %all be ! same
 z ! "* ( ! ga9 or loss :i* w\ld h      
result$ f ! sale ( su* prop]ty z ( !    
close ( ! taxable ye> prec$+ ! ye> ( !  
*ange 7)9 ! mean+ ( section #dha7 "u !  
me?od ( acc\nt+ us$ = su* prec$+ taxable
 ye>4  1  7#b7 by r$esignat+ subsection 
7g7 z subsection 7h71 &  7#c7 by ins]t+ 
aft] subsection 7f7 ! foll[+ new        
subsection3  7g7  ,election ( m>k to    
m>ket = deal]s & trad]s 9 cov]$ digital 
assets  7#a7  ,deal] 9 cov]$ digital    
assets  ,9 ! case ( a deal] 9 cov]$     
digital assets :o elects ! application (
 ?is p>agraph1 ?is section %all apply to
 cov]$ 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 cov]$ digital assets   
,9 ! case ( a p]son :o is engag$ 9 a    
trade or bus9ess z a trad] 9 cov]$      
digital 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 cov]$ digital     
assets held by su* trad] 9 connection ) 
su* trade or bus9ess 9 ! same mann] z   
su* subsection applies to securities    
held by a trad] 9 securities4  7#c7     
,election & revocation  ,an election "u 
p>agraph 7#a7 or 7#b7 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#d7  ,def9itions  ,= purposes ( ?is    
subsection-- 7,a7 ,cov]$ digital asset  
,! t]m cov]$ digital asset means--  7i7 
any trad$ digital asset1  7ii7 any      
qualifi$ ,u4,s4 doll> /ableco91  7iii7  
any notional pr9cipal contract ) respect
 to any trad$ digital asset1  7iv7 any  
evid5ce ( an int]e/ 91 or d]ivative     

f9ancial in/rum5t 91 any trad$ digital  
asset or any notional pr9cipal contract 
describ$ 9 clause 7iii71 includ+ any    
option1 =w>d contract1 futures contract1
 %ort position1 or simil> f9ancial      
in/rum5t1 &  7v7 any position :i*-- 7,i7
 is n describ$ 9 clause 7i71 7ii71      
7iii71 or 7iv71  7,,ii7 is a h$ge )     
respect to any item describ$ 9 clause   
7i71 7ii71 7iii71 or 7iv71 &  7,,iii7 is
 cle>ly id5tifi$ 9 ! taxpay]'s records z
 be+ describ$ 9 ?is clause be=e ! close 
( ! day on :i* x 0 acquir$ or ent]$ into
 7or su* o!r "t z ! ,secret>y may by    
regulations prescribe74  7,b7  ,deal] 9 
cov]$ digital assets  ,! t]m deal] 9    
cov]$ digital assets means a taxpay]    
:i*--  7i7 regul>ly pur*ases cov]$      
digital assets f1 or sells cov]$ digital
 assets to1 cu/om]s 9 ! ord9>y c\rse ( a
 trade or bus9ess1 or  7ii7 regul>ly    
(f]s to ent] into1 assume1 (fset1       
assign1 or o!rwise t]m9ate positions 9  
cov]$ digital assets ) cu/om]s 9 !      
ord9>y c\rse ( a trade or bus9ess4  7#e7

  ,regulations & guidance  ,! ,secret>y 
%all prescribe su* regulations or o!r   
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( ?is
 subsection1 includ+ rules to coord9ate 
?is subsection ) ! treatm5t "u ?is      
section ( a cov]$ digital asset t is    
also a security or commodity4  4  7b7   
,application to fir/ taxable ye>  ,9 !  
case ( any taxpay] :o makes an election 
"u p>agraph 7#a7 or 7#b7 ( subsection   
7g7 ( section #dge ( ! ,int]nal ,rev5ue 
,code ( #aihf 7z add$ by subsection 7a77
 ) respect to ! fir/ taxable ye> beg9n+ 
aft] ! date ( enactm5t ( ?is ,act--     
7#a7 any id5tification requir$ pursuant 
to ! application ( su* subsection )     
respect to cov]$ digital assets held on 
! fir/ day ( su* taxable ye> %all be    
treat$ z timely made if made on or be=e 
! #cj? day ( su* taxable ye>1 &  7#b7 ! 
net am\nt ( ! adju/m5ts requir$ to be   
tak5 into acc\nt by ! taxpay] "u section
 #dha ( su* ,code by reason ( !         
application ( su* subsection %all be    

tak5 into acc\nt ratably ov] !          
#d-taxable ye> p]iod beg9n+ ) su*       
taxable ye>4  7c7  ,treatm5t z specifi$ 
s]vice trade or bus9ess  ,section       
#aii;,a7d77#b77;,b7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by /rik+ or     
commodities 7z def9$ 9 section          
#dge7;e77#b77 & ins]t+ commodities 7z   
def9$ 9 section #dge7;e77#b771 trad$    
digital assets1 or cov]$ digital assets 
7z def9$ 9 section #dge7;g77#d77;,a774  
7d7  ,effective date  ,! am5dm5ts made  
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ,decemb] #ca1 #bjbf4   
#d4 ,s\rce rules = digital asset        
validation activities  7a7 ,9 g5]al     
,section #hfc ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new subsection3  7f7 ,special    
rules = income f validation ( digital   
assets  7#a7 ,9 g5]al ,except z provid$ 
9 p>agraph 7#b7 or 9 regulations1 any   
income d]iv$ f digital asset validation 
support+ activities-- 7,a7 if d]iv$ by a
 ,unit$ ,/ates p]son1 %all be s\rc$ 9 ! 

,unit$ ,/ates1 &  7,b7 if d]iv$ by a    
p]son o!r ?an a ,unit$ ,/ates p]son1    
%all be s\rc$ outside ! ,unit$ ,/ates4  
7#b7 ,treatm5t ( bran*es  7,a7 ,=eign   
bran*es ,except z provid$ 9 regulations1
 9 ! case ( a ,unit$ ,/ates p]son ) a   
qualifi$ bus9ess unit 7z def9$ 9 section
 #ihi7;a77 9 a =eign c\ntry1 income     
describ$ 9 p>agraph 7#a7 t con/itutes   
bus9ess pr(its attributable to su* unit 
%all be s\rc$ outside ! ,unit$ ,/ates4  
7,b7 ,u4,s4 bran*es ,excepts z provid$ 9
 regulations1 9 ! case ( a p]son t is n 
a ,unit$ ,/ates p]son & t ma9ta9s an    
(fice or o!r fix$ place ( bus9ess 9 !   
,unit$ ,/ates1 income describ$ 9        
p>agraph 7#a7 attributable to su* (fice 
or o!r fix$ place ( bus9ess %all be     
s\rc$ 9 ! ,unit$ ,/ates4  7,c7          
,attribution ,= purposes ( subp>agraphs 
7,a7 & 7,b71 ! ,secret>y %all issue su* 
regulations or o!r guidance z !         
,secret>y det]m9es necess>y or          
appropriate = purposes ( det]m9+ ! am\nt
 ( bus9ess pr(its attributable to a     

qualifi$ bus9ess unit or (fice or o!r   
fix$ place ( bus9ess4  7#c7 ,special    
rules = m9+  7,a7 ,c]ta9 am\nts treat$ z
 income ,= purposes ( p>agraph 7#a7--   
7i7 ,9 g5]al ,except z provid$ 9 clause 
7ii71 any am\nts receiv$ 7includ+ am\nts
 receiv$ z digital assets or transaction
 fees7 directly ?r\gh a m9+ pool or     
simil> arrangem5t z a result ( !        
taxpay]'s p]=mance (1 or contribution ( 
comput+ p[] to1 m9+ %all be treat$ z    
income d]iv$ f digital asset validation 
support+ activities4  7ii7 ,exclusion   
,comp5sation receiv$ = provid+ s]vices  
to ano!r p]son = s]vices relat$ to m9+  
7includ+ ho/+ & equipm5t managem5t      
s]vices7 %all n be treat$ z income d]iv$
 f digital asset validation support+    
activities4  7,b7 ,rules = attribution  
to bran*es ,! ,secret>y %all prescribe  
rules = ! purposes ( det]m9+ :e!r1 & to 
:at ext5t1 income d]iv$ f m9+ is        
attributable to a qualifi$ bus9ess unit 
or an (fice or o!r fix$ place ( bus9ess 
"u p>agraph 7#b74 ,su* rules %all take  

into acc\nt-- 7i7 ! location & relative 
contribution ( ! comput+ equipm5t us$ 9 
! m9+ activity1  7ii7 ! location (      
p]sonnel p]=m+ functions ) respect to ! 
op]ation1 managem5t1 or ma9t5ance ( su* 
equipm5t1 &  7iii7 su* o!r functions1   
assets1 risks1 or o!r factors z !       
,secret>y det]m9es necess>y or          
appropriate4  7#d7 ,treatm5t ( p>tn]%ips
 ,9 ! case ( a p>tn]%ip1 except z       
o!rwise provid$ by ! ,secret>y 9        
regulations or o!r guidance1 ?is        
subsection %all be appli$ at ! p>tn]    
level4  4  7b7 ,effective date ,!       
am5dm5t made by ?is section %all apply  
to income d]iv$ aft] ! date ( ! enactm5t
 ( ?is ,act4  7c7 ,no inf]5ce ,!        
am5dm5ts made by ?is section %all n be  
con/ru$ to create any inf]5ce ) respect 
to :e!r1 or ! "t at :i*1 a digital asset
 creat$1 issu$1 acquir$1 or receiv$ 9   
connection ) digital asset validation   
activity 7z def9$ 9 section #ggja7q71 z 
add$ by ?is ,act7 is includible 9 gross 
income4  #e4 ,c]ta9 trad+ 9 digital     

assets n treat$ z a trade or bus9ess )9 
! ,unit$ ,/ates  7a7 ,9 g5]al ,section  
#hfd7;b77#b7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by r$esignat+          
subp>agraph 7,c7 z subp>agraph 7,d7 & by
 ins]t+ aft] subp>agraph 7,b7 ! foll[+  
new subp>agraph3  7,c7 ,digital assets  
7i7 ,9 g5]al ,trad+ 9 trad$ 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 /ak+ provid]1 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 cov]$ 
digital assets 7z def9$ 9 section       
#dge7;g77#d77;,b774  4  7b7 ,con=m+     
am5dm5ts  7#a7 ,subp>agraph 7,d7 (      
section #hfd7;b77#b7 ( su* ,code 7z     
r$esignat$ by subsection 7a77 is am5d$--

 7,a7 by /rik+ subp>agraphs 7,a77i7 &   
7,b77i7 & ins]t+ subp>agraphs 7,a77i71  
7,b77i71 & 7,c77i71 &  7,b7 by /rik+ or 
9 commodities & ins]t+ 9 commodities1 or
 9 trad$ digital assets4  7#b7 ,! head+ 
( section #hfd7;b77#b7 ( su* ,code is   
am5d$ by /rik+ or commodities & ins]t+ 1
 commodities1 or digital assets4  7c7   
,effective date  7#a7 ,9 g5]al ,!       
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbf4  7#b7 ,no inf]5ce ,!        
am5dm5ts made by ?is section %all n be  
con/ru$ to create any inf]5ce ) respect 
to ! application ( section #hfd7;b77#b7 
( ! ,int]nal ,rev5ue ,code ( #aihf to ! 
trad+ ( digital assets = any p]iod      
beg9n+ be=e ! date describ$ 9 p>agraph  
7#a74  #f4 ,transf] ( digital assets "u 
c]ta9 agreem5ts  7a7 ,transf]s "u       
agreem5t  7#a7 ,9 g5]al ,section #ajeh (
 ! ,int]nal ,rev5ue ,code ( #aihf is    
am5d$-- 7,a7 9 subsection 7a71 by /rik+ 
securities 7z def9$ 9 section #abcf7;c77
 & ins]t+ applicable assets1 &  7,b7 by 

add+ at ! end ! foll[+ new subsection3  
7d7 ,applicable asset ,= purposes ( ?is 
section1 ! t]m applicable asset means-- 
7#a7 any security 7z def9$ 9 section    
#abcf7;c771 &  7#b7 trad$ digital       
assets4  4  7#b7 ,con=m+ am5dm5ts  7,a7 
,subsections 7a7 & 7b7 ( section #ajeh (
 su* ,code1 z am5d$ by p>agraph 7#a71   
are ea* am5d$ by /rik+ securities ea*   
place x appe>s & ins]t+ applicable      
assets4  7,b7 ,! head+ ( section #ajeh (
 su* ,code is am5d$ by /rik+ securities 
& ins]t+ assets4  7,c7 ,! item relat+ to
 section #ajeh 9 ! table ( sections = "p
 ,,iv ( sub*apt] ,o ( *apt] #a ( su*    
,code is am5d$ by /rik+ securities &    
ins]t+ assets4  7b7 ,treatm5t ( c]ta9   
legal entitlem5ts & obligations :i*     
accrue dur+ p]iod ( agreem5t ,section   
#ajeh7;b77#b7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf1 z am5d$ by subsection 7a77#b71
 is am5d$ by ins]t+ 7includ+1 9 ! case (
 a trad$ digital asset1 to ! ext5t      
provid$ by ! ,secret>y1 am\nts equival5t
 to any protocol di/ribution or /ak+    

rew>d ) respect to su* asset1 or to any 
transaction fee1 priority fee1 or tip   
allocat$ to ! own] by reason ( /ak+7    
aft] & o!r di/ributions4  7c7 ,paym5ts )
 respect to loans  7#a7 ,9 g5]al        
,section #eab ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$-- 7,a7 9 subsection   
7a77#e77;,a71 by /rik+ 9 respect ( a    
security 7z def9$ 9 section #abcf7;c77 &
 ins]t+ 9 respect ( an applicable asset 
7z def9$ 9 section #ajeh7;d771 &  7,b7 9
 subsection 7b77#e71 by /rik+ securities
 7z def9$ 9 section #abcf7;c77 & ins]t+ 
applicable assets 7z def9$ 9 section    
#ajeh7;d774  7#b7 ,inclusion ( c]ta9    
paym5ts ,section #eab7;a77#e77;,a77i7 ( 
su* ,code is am5d$ by /rik+ or o!r      
di/ributions & ins]t+ prop]ty1 legal    
entitlem5ts1 or o!r di/ributions4  7#c7 
,con=m+ am5dm5ts  7,a7 ,section #eab (  
su* ,code is am5d$ by /rik+ paym5ts )   
respect to securities loans ea* place x 
appe>s 9 subsection 7a77#e7 & 7b77#a7 & 
ins]t+ paym5ts ) respect to applicable  
asset loans4  7,b7 ,section #eab7;a77#e7

 ( su* ,code is am5d$-- 7i7 by /rik+ !  
security ea* place x appe>s & ins]t+ !  
applicable asset1  7ii7 by /rik+        
securities ea* place x appe>s & ins]t+  
applicable assets1 &  7iii7 by /rik+    
securities loans 9 ! head+ !re( & ins]t+
 applicable asset loans4  7,c7 ,! foll[+
 provisions ( ! ,int]nal ,rev5ue ,code (
 #aihf are ea* am5d$ by /rik+ paym5ts ) 
respect to securities loans 7z def9$ 9  
section #eab7;a77#e77 & ins]t+ paym5ts )
 respect to applicable asset loans 7z   
def9$ 9 section #eab7;a77#e773 7i7      
,section #eji7;e74  7ii7 ,section       
#ead7;c77#h77;,a74  7iii7 ,section      
#hea7;b77#b77;,a74  7iv7 ,section       
#didj7;c77#b74  7,d7 ,section           
#bfc7;g77#b77;,b77iv7 ( su* ,code is    
am5d$ by /rik+ a paym5t ) respect to a  
security loan 7z def9$ 9 section        
#eab7;a77#e77 & ins]t+ a paym5t )       
respect to an applicable asset loan 7z  
def9$ 9 section #eab7;a77#e774  7d7     
,effective date  7#a7 ,9 g5]al ,!       
am5dm5ts made by ?is section %all apply 

to transf]s aft] ! date ( ! enactm5t (  
?is ,act4  7#b7 ,no inf]5ce ,! am5dm5ts 
made by ?is section %all n be con/ru$ to
 create any inf]5ce ) respect to !      
non-recognition treatm5t ( ! transf] (  
any trad$ digital asset 7)9 ! mean+ (   
section #ajeh7;d7 ( ! ,int]nal ,rev5ue  
,code ( #aihf1 z add$ by ?is section7   
pursuant to an agreem5t t w\ld o!rwise  
qualify "u #ajeh ( su* ,code be=e ! date
 describ$ 9 p>agraph 7#a74  #g4         
,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 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 trad$ digital asset 7o!r   
?an a qualifi$ ,u4,s4 doll> /ableco974  

7#b7 ,treatm5t ( tok5iz$ digital assets 
z sub/antially id5tical to an           
economically equival5t /ock or security 
,a tok5iz$ digital asset 7or a bridg$   
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 trad$ digital 
asset if su* tok5iz$ digital asset 7or  
su* bridg$ digital asset7 is            
economically equival5t to su* /ock1     
security1 or trad$ digital asset4  4    
7c7 ,exception = c]ta9 acquisitions (   
digital assets ,section #ajia ( su*     
,code1 z am5d$ by subsection 7b71 is    
fur!r am5d$ by add+ at ! end ! foll[+   
new subsection3  7h7 ,exception = c]ta9 
acquisitions ( digital assets ,?is      
section %all n apply ) respect to !     
acquisition ( a digital asset if su*    
digital asset is acquir$-- 7#a7 9       
connection ) ! validation ( digital     
asset transactions 7includ+ digital     
asset validation support+ activities71  
or  7#b7 9 a transaction :i* is "p ( a  

regul> or p]iodic s]ies ( acquisitions (
 digital assets :i* are includ$ by !    
taxpay] z ord9>y income4  4  7d7        
,exception = c]ta9 m>k-to-,m>ket        
positions ,section #ajia ( su* ,code1 z 
am5d$ by subsections 7b7 & 7c71 is fur!r
 am5d$ by add+ at ! end ! foll[+ new    
subsection3  7i7  ,exception = c]ta9    
m>k-to-,m>ket positions  ,?is section   
%all n apply ) respect to any specifi$  
asset to :i* subsection 7a7 ( section   
#dge applies 7includ+ by reason ( an    
election "u subsection 7e71 7f71 or 7g7 
( su* section74  4  7e7 ,con=m+ am5dm5ts
  7#a7 ,sections #cab7;f77#a7 &         
#abef7;f77#e7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf are ea* am5d$ by /rik+ /ock or 
securities & ins]t+ specifi$ assets4    
7#b7 ,clause 7ii7 ( section             
#fjde7;g77#b77;,b7 ( su* ,code is am5d$ 
to read z foll[s3  7ii7 ,exception = wa%
 sales  7,i7 ,9 g5]al ,except z o!rwise 
provid$ by ! ,secret>y1 ! cu/om]'s      
adju/$ basis %all be det]m9$ )\t reg>d  
to section #ajia 7relat+ to loss f wa%  

sales ( specifi$ assets7 unless !       
transactions occur 9 ! same acc\nt )    
respect to id5tical specifi$ assets4    
7,,ii7 ,tok5iz$ digital assets ,=       
purposes ( subclause 7,i71 a tok5iz$    
digital asset & a specifi$ asset t is n 
a tok5iz$ digital asset %all be treat$ z
 id5tical specifi$ assets only if su*   
tok5iz$ digital asset is a direct       
digital repres5tation ( su* o!r specifi$
 asset  4  7#c7 ,section #ajia7;e7 ( su*
 ,code 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 !   
same mean+ giv5 ! t]m securities futures
 contract "u section #abcd;,b7c71 except
 t su* t]m %all include a contract = !  
future deliv]y ( a digital asset4  4    
7#d7 ,! head+ ( section #ajia ( su*     
,code is am5d$ by /rik+ /ock or         
securities & ins]t+ specifi$ assets4    
7#e7 ,! head+s ( subsections 7b71 7c71 &
 7d7 ( section #ajia ( su* ,code 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 ( su* ,code is am5d$ by /rik+  
/ock or securities & ins]t+ specifi$    
assets4  7f7 ,effective dates  7#a7 ,9  
g5]al ,except z provid$ "u p>agraphs    
7#b7 & 7#c71 ! am5dm5ts made by ?is     
section %all apply to sales1            
dispositions1 & t]m9ations aft] ! date (
 enactm5t ( ?is ,act4  7#b7 ,exception =

 c]ta9 acquisitions ,= purposes ( !     
application ( section #ajia ( ! ,int]nal
 ,rev5ue ,code ( #aihf ) respect to any 
digital asset acquir$ be=e ! date (     
enactm5t ( ?is ,act1 ! am5dm5ts made by 
?is section %all be deem$ to n apply4   
7#c7 ,transition rule = brok] report+ ,=
 purposes ( ! application ( section     
#fjde7;g7 ( ! ,int]nal ,rev5ue ,code (  
#aihf ) respect to any sales1           
dispositions1 & t]m9ations ( any digital
 assets t are n securities be=e ,janu>y 
#a1 #bjbh1 ! am5dm5ts made by ?is       
section %all be deem$ to n apply4  #h4  
,treatm5t ( tru/s & publicly trad$      
p>tn]%ips hold+ digital assets  7a7     
,tru/s  7#a7 ,9 g5]al ,section #ggja ( !
 ,int]nal ,rev5ue ,code ( #aihf is      
am5d$-- 7,a7 by r$esignat+ subsection   
7p7 z subsection 7q71 &  7,b7 by ins]t+ 
aft] subsection 7o7 ! foll[+ new        
subsection3  7p7 ,tax treatm5t ( c]ta9  
digital asset inve/m5t tru/s  7#a7 ,9   
g5]al ,= purposes ( ?is title1 9 ! case 
( a cov]$ 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  7#b7 ,nonapplication to validat+ 
trade or bus9ess ,?is subsection %all n 
apply 9 ! case ( any entity or          
arrangem5t engag$ 9 ! active conduct ( a
 trade or bus9ess ( validat+ digital    
asset transactions4  7#c7 ,cov]$ digital
 asset inve/m5t tru/ ,= purposes ( ?is  
subsection1 ! t]m cov]$ digital asset   
inve/m5t tru/ means a tru/ :i* satisfies
 ea* ( ! foll[+ requirem5ts3 7,a7 ,!    
tru/ is trad$ on a national securities  
ex*ange :i* is regi/]$ ) ! ,securities &
 ,ex*ange ,commission & complies ) any  
applicable rules & regulations e/abli%$ 
by su* ,commission4  7,b7 ,! tru/ only  
holds units ( a s+le digital asset & any
 transactions ) respect to su* units are
 c>ri$ out on a network t uses a        
pro(-(-/ake cons5sus me*anism4  7,c7 ,! 
tru/'s digital assets are held by a     
qualifi$ cu/odian on behalf ( ! tru/ at 
digital asset addresses controll$ by su*
 cu/odian4  7,d7 ,! tru/ directs /ak+ ( 
its digital assets ?r\gh #a or m        
cu/odians :o facilitate ! /ak+ ( !      

digital assets on behalf ( ! tru/ ) #a  
or m /ak+ provid]s1 subject to t]ms     
consi/5t ) ^? t w\ld be agre$ to betwe5 
unrelat$ p]sons deal+ at arm's l5g? "u  
comp>able circum/ances4  7#d7           
,regulations & guidance ,! ,secret>y    
%all prescribe su* regulations or o!r   
guidance z may be necess>y & appropriate
 to c>ry out ! purposes ( ?is subsection
  4  7#b7 ,effective date  7,a7 ,9 g5]al
 ,subject to subp>agraph 7,b71 !        
am5dm5ts made by ?is subsection %all    
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjbf4  7,b7 ,election ,at
 ! election ( ! taxpay]1 ! am5dm5ts made
 by ?is subsection may apply to any     
taxable ye>s beg9n+ be=e ,janu>y #a1    
#bjbg4 ,no inf]5ce may be drawn f !     
am5dm5ts made by ?is subsection )       
respect to ! abs5ce ( explicit rules    
dur+ su* taxable ye>s4  7b7 ,publicly   
trad$ p>tn]%ip  7#a7 ,9 g5]al ,section  
#ggjd7;d77#a7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$-- 7,a7 9 subp>agraph  
7,f71 by /rik+ & at ! end1  7,b7 9      

subp>agraph 7,g71 by /rik+ ! p]iod at ! 
end & ins]t+ 1 &1  7,c7 by ins]t+ aft]  
subp>agraph 7,g7 ! foll[+ new p>agraph3 
7,h7 7i7 /ak+ rew>ds1 to ! ext5t        
includible 9 gross income1  7ii7 paym5ts
 ) respect to applicable asset loans 7z 
def9$ 9 section #eab7;a77#e77 to ! ext5t
 attributable to trad$ digital assets1  
or  7iii7 ga9s f ! sale or ex*ange (--  
7,i7 digital assets 7o!r ?an ^? describ$
 9 section #abba7;a77#a7 9 ! h&s ( !    
taxpay]71 or  7,,ii7 futures contracts1 
=w>d contracts1 or options ) respect to 
digital assets4  1 &  7,d7 9 ! flu% text
 foll[+ subp>agraph 7,h71 by add+ at !  
end ! foll[+3 ,= purposes ( subp>agraph 
7,h71 qualify+ income %all n include    
income or ga9 d]iv$ f op]at+ a digital  
asset ex*ange1 l5d+ plat=m1 brok]1      
deal]1 or o!r digital asset f9ancial    
s]vices bus9ess = a spread1 commission1 
fee1 or simil> comp5sation44  7#b7      
,effective date ,! am5dm5ts made by ?is 
subsection %all apply to taxable ye>s   
beg9n+ aft] ,decemb] #ca1 #bjbf4  #i4   

,application ( con/ructive sale rules to
 digital assets  7a7 ,9 g5]al ,section  
#abei ( ! ,int]nal ,rev5ue ,code ( #aihf
 is am5d$-- 7#a7 9 subsection 7b77#a71  
by ins]t+ #8#8digital asset 7o!r ?an a  
qualifi$ ,u4,s4 doll> /ableco971'' aft] 
#8#8debt in/rum5t1''1 &  7#b7 9         
subsection 7c7-- 7,a7 9 p>agraph 7#b71  
by ins]t+ or widely trad$ digital asset 
aft] m>ketable security 7z def9$ 9      
section #dec7;f771 &  7,b7 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 7or a bridg$ digital asset
 ) respect to :i* ! ref]5ce digital     
asset is a trad$ digital asset7 %all be 
treat$ z sub/antially id5tical to any   
/ock1 debt in/rum5t1 p>tn]%ip int]e/1 or
 widely trad$ digital asset if su*      
tok5iz$ digital asset 7or su* bridg$    
digital asset7 is economically equival5t
 to su* /ock1 debt in/rum5t1 p>tn]%ip   
int]e/1 or widely trad$ digital asset4  

4  7b7 ,effective date  7#a7 ,9 g5]al ,!
 am5dm5ts made by ?is section %all apply
 to con/ructive sales aft] ! date (     
enactm5t ( ?is ,act4  7#b7 ,rule (      
con/ruction ,no transaction ent]$ into  
on or be=e ! date ( enactm5t ( ?is ,act 
%all be deem$ to cause or result 9 a    
con/ructive sale by reason ( ! am5dm5ts 
made by ?is section4  #aj4 ,*>itable    
contributions ( widely trad$ digital    
assets  7a7 ,exception f appraisal      
requirem5ts ,section                    
#agj7;f77#aa77;,a77ii77,i7 ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 widely trad$ digital assets 7except z !
 ,secret>y det]m9es appropriate to      
prev5t abuse ( ?is section71 aft]       
publicly trad$ securities 7z def9$ 9    
section #fjej,l7a77#b77;,b7714  7b7     
,effective date ,! am5dm5t made by ?is  
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbf4  #aa4  
,treatm5t ( de m9imis digital asset     
network fees  7a7 ,9 g5]al ,"p ,,iii (  
sub*apt] ,o ( *apt] #a ( ! ,int]nal     

,rev5ue ,code ( #aihf1 z am5d$ by       
section #b1 is am5d$ by ins]t+ aft]     
section #ajdc ! foll[+ new section3     
#ajdd4 ,de m9imis network fee exception 
7a7 ,9 g5]al ,no ga9 or loss %all be    
recogniz$ ) respect to any qualifi$     
transaction co/ disposition4  7b7       
,qualifi$ transaction co/ disposition ,=
 purposes ( ?is section1 ! t]m qualifi$ 
transaction co/ disposition means !     
disposition ( a digital asset by a      
taxpay]-- 7#a7 9 satisfaction ( a       
digital asset transaction co/ paid or   
incurr$ by ! taxpay]1 includ+ a         
disposition result+ f ! )hold+ ( a      
digital asset f an am\nt transf]r$ or   
receiv$ by ! taxpay]1 &  7#b7 ) respect 
to :i* ! aggregate fair m>ket value (   
all digital assets dispos$ ( by !       
taxpay] 9 satisfaction ( digital asset  
transaction co/s relat+ to su*          
transaction does n exce$ #aj4  7c7      
,digital asset transaction co/  7#a7 ,9 
g5]al ,= purposes ( ?is section1 ! t]m  
digital asset transaction co/ means any 

am\nt paid 9 ca% or prop]ty 7includ+ a  
digital asset7 to effect ! sale1        
disposition1 or acquisition ( a digital 
asset1 includ+ transaction fees1 transf]
 taxes1 commissions1 & network fees paid
 or incurr$ ) respect to any digital    
asset transaction initiat$ by ! taxpay] 
& record$ on a cryptographically secur$ 
di/ribut$ l$g]4  7#b7 ,network fee ,=   
purposes ( p>agraph 7#a71 ! t]m network 
fee means any am\nt paid or incurr$ to  
cause1 facilitate1 exp$ite1 or          
prioritize ! execution1 validation1     
settlem5t1 or record+ ( a digital asset 
transaction on a cryptographically      
secur$ di/ribut$ l$g] or simil>         
te*nology1 includ+ any base fee1 gas    
fee1 priority fee1 tip1 or simil> am\nt1
 )\t reg>d to-- 7,a7 :e!r paym5t ( su*  
am\nt is m&atory or elective1 or  7,b7  
:e!r su* am\nt is paid or transf]r$ to a
 p]son1 paid or transf]r$ to a protocol1
 burn$1 de/roy$1 or o!rwise remov$ f    
circulation4  7d7 ,aggregation rule     
7#a7 ,9 g5]al ,= purposes ( subsection  

7b77#b7-- 7,a7 all digital assets       
dispos$ ( 9 satisfaction ( digital asset
 transaction co/s relat+ to ! same      
economic transaction %all be aggregat$1 
includ+ a s]ies ( relat$ economic       
transactions /ructur$ = ! purpose (     
avoid+ ! limitation "u su* subsection1 &
  7,b7 any digital asset transaction co/
 paid or incurr$ to effect ! disposition
 ( a digital asset us$ to pay ano!r     
digital asset transaction co/ %all be   
treat$ z relat+ to ! transaction to :i* 
su* o!r co/ relates4  7#b7 ,limitation  
,= purposes ( p>agraph 7#a71            
transactions %all n be aggregat$ solely 
because su* transactions are execut$    
?r\gh ! same acc\nt1 wallet1 protocol1  
program1 sm>t contract1 or automat$     
/rategy4  7e7 ,det]m9ation ( fair m>ket 
value ,= purposes ( subsection 7b77#b71 
! fair m>ket value ( a digital asset    
%all be det]m9$ z ( ! date & "t ( !     
disposition ( su* digital asset4  7f7   
,coord9ation ) treatm5t ( transaction   
co/s ,no?+ 9 ?is section %all be deem$  

to modify ! capitalization1 allocation1 
or o!r treatm5t ( a digital asset       
transaction co/4  7g7 ,treatm5t (       
unrecogniz$ ga9 ,! am\nt ( any digital  
asset transaction co/ :i* w\ld o!rwise  
be tak5 into acc\nt 9 det]m9+ ! am\nt ( 
ga9 or loss on ! disposition ( any      
asset1 9 det]m9+ ! am\nt ( any d$uction1
 or 9 det]m9+ ! basis ( any asset       
acquir$1 %all be r$uc$ by ! am\nt ( any 
ga9 or increas$ by ! am\nt ( any loss n 
recogniz$ by reason ( subsection 7a7 )  
respect to ! disposition ( ! digital    
asset us$ to pay su* digital asset      
transaction co/4  7h7 ,exclusions  7#a7 
,trade or bus9ess ,subsection 7a7 %all n
 apply to ! disposition ( a digital     
asset by-- 7,a7 a trad]1 brok]1 or deal]
 9 digital assets1  7,b7 a p]son 9 !    
trade or bus9ess ( bat*+ or facilitat+ !
 validation ( digital asset transactions
 on behalf ( o!rs1  7,c7 to ! ext5t     
provid$ by ! ,secret>y1 any p]son 9 a   
trade or bus9ess :i* is sub/antially    
simil> to a trade or bus9ess describ$ 9 

subp>agraph 7,a7 or 7,b71 or  7,d7 any  
p]son t initiat$ m ?an #e1jjj digital   
asset transactions dur+ ! prec$+ taxable
 ye>4  7#b7 ,c]ta9 acc\nt+ me?ods       
,subsection 7a7 %all n apply to any     
digital asset-- 7,a7 to :i* section #dge
 or #abef7;a7 applies1 or  7,b7 except z
 o!rwise provid$ by ! ,secret>y1 to :i* 
a m>k-to-m>ket me?od applies "u any o!r 
provision ( ?is subtitle4  7i7          
,regulations ,! ,secret>y %all issue su*
 regulations or o!r guidance z may be   
necess>y or appropriate to c>ry out !   
purposes ( ?is section1 includ+         
regulations or guidance to prev5t !     
abuse ( ?is section ?r\gh transaction   
/ructur+ = ! purpose ( qualify+ = !     
exclusion provid$ 9 subsection 7a74  4  
7b7 ,exemption f in=mation report+      
,section #fjde7;i7 ( su* ,code1 z add$  
by section #b ( ?is ,act1 is am5d$--    
7#a7 by r$esignat+ p>agraph 7#b7 z      
p>agraph 7#c71 &  7#b7 by ins]t+ aft]   
p>agraph 7#a7 ! foll[+ new p>agraph3    
7#b7 ,de m9imis network fee exception   

7,a7 ,9 g5]al ,except z o!rwise provid$ 
by ! ,secret>y or "u subp>agraph 7,b71 9
 ! case ( ! disposition ( a digital     
asset to :i* section #ajdd7;a7 applies1 
subsection 7a7 %all n apply ) respect to
 su* disposition4  7,b7 ,aggregate      
in=mation ,) respect to any dispositions
 describ$ 9 subp>agraph 7,a71 a brok]   
%all include 9 ! return "u subsection   
7a7 su* aggregate in=mation relat+ to   
su* dispositions z ! ,secret>y det]m9es 
necess>y or appropriate1 includ+ =      
purposes ( v]ify+ ! taxpay]'s basis 9   
digital assets held by ! taxpay]4  4    
7c7 ,exception f wa% sale rules ,section
 #ajia ( ! ,int]nal ,rev5ue ,code (     
#aihf1 z am5d$ by ?is ,act1 is fur!r    
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7j7 ,exception = qualifi$  
transaction co/ dispositions ,?is       
section %all n apply ) respect to any   
qualifi$ transaction co/ disposition 7z 
def9$ 9 section #ajdd7;b774  4  7d7     
,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 
#ajdc ! foll[+ new item3  ,sec4 #ajdd4  
,de m9imis network fee exception4  4    
7e7 ,effective date ,! am5dm5ts made by 
?is section %all apply to ! disposition 
( assets aft] ,decemb] #ca1 #bjbf4  #ab4
 ,treatm5t ( income f qualifi$ digital  
asset validation activity by tax-exempt 
entities  7a7 ,treatm5t "u unrelat$     
bus9ess taxable income  7#a7 ,9 g5]al   
,section #eab7;b7 ( ! ,int]nal ,rev5ue  
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new p>agraph3  7#bj7 ,c]ta9    
digital asset validation income  7,a7 ,9
 g5]al ,!re %all be exclud$ income f    
qualifi$ digital asset validation       
activity1 & all d$uctions directly      
connect$ ) su* income4  7,b7 ,qualifi$  
digital asset validation activity  7i7  
,9 g5]al ,= purposes ( ?is subsection1 !
 t]m qualifi$ digital asset validation  
activity means any activity-- 7,i7 :i*  
involves digital asset validation       
support+ activities1 &  7,,ii7 9 :i* !  

taxpay] does n sub/antially p>ticipate4 
7ii7 ,sub/antial p>ticipation ,=        
purposes ( clause 7i77,,ii71 a taxpay]  
%all be treat$ z n sub/antially         
p>ticipat+ 9 an activity describ$ 9     
clause 7i77,i7 if ! taxpay]-- 7,i7 owns 
! digital assets & delegates validation 
rights to ano!r p]son on t]ms consi/5t )
 ^? t w\ld be agre$ to betwe5 unrelat$  
p]sons deal+ at arm's l5g? "u comp>able 
circum/ances1  7,,ii7 does n op]ate !   
validator nodes & does n control        
validator selection beyond delegation & 
committ+ or uncommitt+ tok5s to !       
validation network1 &  7,,iii7 does n   
und]take o!r activity t seeks to control
 ! activity describ$ 9 clause 7i77,i74  
4  7#b7 ,debt-f9anc$ prop]ty ,section   
#eab7;b77#d7 ( su* ,code is am5d$ by    
/rik+ or 7#e7 & ins]t+ 7#e71 or 7#bj74  
7b7 ,regulations ,! ,secret>y ( !       
,treasury 7or ! ,secret>y's delegate7   
%all issue su* regulations or o!r       
guidance z may be necess>y or           
appropriate to c>ry out ! purposes ( !  

am5dm5ts made by ?is section1 includ+   
regulations or guidance to prev5t !     
abuse ( su* am5dm5ts4  7c7 ,effective   
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjbf4  #ac4 ,application 
( regi/ration-requir$ obligation rules  
7a7 ,exception = qualifi$ ,u4,s4 doll>  
/ableco9s ,section #afc7;f77#b77;,a7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is      
am5d$-- 7#a7 by /rik+ or at ! end (     
clause 7ii71  7#b7 by /rik+ ! p]iod at !
 end ( clause 7iii7 & ins]t+ 1 or1 &    
7#c7 by add+ at ! end ! foll[+ new      
clause3  7iv7 is a qualifi$ ,u4,s4 doll>
 /ableco94  4  7b7 ,cl>ification (      
treatm5t ( digital assets ,section #dgja
 ( su* ,code is am5d$ by add+ at ! end !
 foll[+ new subsection3  7c7 ,digital   
assets  7#a7 ,location ( disclosure     
/atem5t ,9 ! case ( any digital asset1 !
 requirem5t ( clause 7iii7 ( subsection 
7b77#a77;,b7 %all be treat$ z satisfi$  
if ! /atem5t describ$ !re9 is includ$ 9 
all writt5 t]ms or m>ket+ mat]ials )    

respect to su* digital asset & 9 su* o!r
 locations or docum5ts z ! ,secret>y may
 prescribe 9 regulations4  7#b7         
,treatm5t ( digital assets )\t a fix$   
maturity date ,9 ! case ( any digital   
asset t does n h a fix$ maturity date at
 issue1 ! date ( maturity ( su* asset = 
purposes ( subsection 7a77#b7 %all be   
treat$ z ! date t is #be ye>s aft] !    
date ( issuance ( su* digital asset4  4 
7c7 ,effective date  7#a7 ,9 g5]al      
,except z o!rwise provid$ 9 ?is         
subsection1 ! am5dm5ts made by ?is      
section %all apply to taxable ye>s end+ 
aft] ! date ( enactm5t ( ?is ,act4  7#b7
 ,cl>ification ( treatm5t ( digital     
assets )\t a fix$ maturity date ,!      
am5dm5t made by subsection 7b7 %all     
apply to digital assets issu$ aft] !    
date ( enactm5t ( ?is ,act4  #ad4       
,treatm5t ( c]ta9 =eign entities        
e/abli%$ 9 connection ) dec5traliz$     
autonom\s organizations  7a7 ,9 g5]al ,n
 lat] ?an#ab mon?s aft] ! date ( !      
enactm5t ( ?is ,act1 ! ,secret>y ( !    

,treasury 7or ! ,secret>y's delegate7   
%all issue regulations or o!r guidance  
to cl>ify ! appropriate tax treatm5t (  
reorganizations ( applicable =eign      
entities 7& ,unit$ ,/ates p]sons relat$ 
to su* entities or involv$ 9 ! gov]nance
 ( su* entities74  7b7 ,matt]s includ$  
,! regulations or o!r guidance issu$ "u 
subsection 7a7 %all-- 7#a7 cl>ify !     
me?ods by :i* applicable =eign entities 
may reorganize z dome/ic corporations "u
 sub*apt] ,c ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf1 &  7#b7 provide1 
9 appropriate circum/ances1 tempor>y    
safe h>bors to enc\rage applicable =eign
 entities organiz$ be=e ,septemb] #bd1  
#bjbf1 to complete su* reorganizations  
promptly aft] ! date ( ! enactm5t ( ?is 
,act4  7c7 ,applicable =eign entity ,=  
purposes ( ?is section1 ! t]m applicable
 =eign entity means an entity :i* is    
e/abli%$-- 7#a7 9 connection ) an       
organization commonly ref]r$ to z       
dec5traliz$ autonom\s organizations1 &  
7#b7 9 a =eign c\ntry z a f\ndation "u  

=eign law 7or o!r simil> /ructure ) a   
purport$ purpose o!r ?an pr(it74  #ae4  
,def9itions  7a7 ,9 g5]al ,section #ggja
 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z  
am5d$ by section #h ( ?is ,act1 is fur!r
 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 ,bridg$ digital asset ,except z   
o!rwise provid$ by ! ,secret>y1 ! t]m   
bridg$ digital asset means 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$4
  7#b7 ,digital asset ,except z o!rwise 
provid$ 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#c7 ,digital asset         
transaction ,! t]m digital asset        
transaction means any transaction1      
in/ruction1 or o!r op]ation submitt$ =  
execution & record$ on !                
cryptographically secur$ di/ribut$ l$g] 
7or simil> te*nology7 ref]r$ to 9       
p>agraph 7#b71 reg>dless ( :e!r su*     
transaction1 in/ruction1 or o!r op]ation
 transf]s a digital asset or is         
successfully execut$4  7#d7 ,digital    
asset validation support+ activities ,! 
t]m digital asset validation support+   
activities means /ak+1 m9+1 or simil>   
activities 9 support ( ! validation (   
digital asset transactions4  7#e7 ,m9+  
7,a7 ,9 g5]al ,! t]m m9+1 :5 us$ 9      
connection ) a digital asset1 means--   
7i7 p]=m+ computations1 or mak+         
available comput+ p[]1 9 support ( !    
validation ( digital asset transactions 
on a cryptographically secur$ di/ribut$ 
l$g] t uses a pro(-(-"w cons5sus        
me*anism1 &  7ii7 except z o!rwise      

provid$ by ! ,secret>y1 any activity :i*
 is sub/antially simil> to an activity  
describ$ 9 clause 7i74  7,b7 ,exception 
,! t]m m9+ does n include /ak+ or !     
op]ation ( a validator node on a        
cryptographically secur$ di/ribut$ l$g] 
t uses a pro(-(-/ake cons5sus me*anism4 
7#f7 ,qualifi$ ,u4,s4 doll> /ableco9    
7,a7 ,9 g5]al ,! 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     
subsection71 or  7ii7 a =eign paym5t    
/ableco9 issu] 7z def9$ 9 section #b7ab7
 ( ! ,,g5ius ,act1 z s 9 effect7        
au?oriz$ to issue su* ,u4,s4 doll>      
/ableco9 to ,unit$ ,/ates p]sons by     
reason (-- 7,i7 regi/ration ) ! ,(fice (
 ! ,comptroll] ( ! ,curr5cy "u ! ,,g5ius
 ,act 7z s 9 effect71 or  7,,ii7 a      
det]m9ation by ! ,secret>y "u su* ,act t
 ! regulatory & sup]visory regime ( !   
jurisdiction 9 :i* su* issu] is organiz$

 is comp>able to ! requirem5ts ( su*    
,act4  7,b7 ,exception ,= purposes (    
subp>agraph 7,a77ii71 a =eign paym5t    
/ableco9 issu] %all n be treat$ z       
au?oriz$ to issue a ,u4,s4 doll>        
/ableco9 "u su* subp>agraph by reason ( 
! abs5ce ( a prohibition on ! (f] or    
sale ( su* ,u4,s4 doll> /ableco9 9 !    
,unit$ ,/ates4  7#g7 ,receipt tok5  7,a7
 ,9 g5]al ,except z o!rwise provid$ by !
 ,secret>y1 ! t]m receipt tok5 means any
 digital asset 7o!r ?an a bridg$ digital
 asset7 t is readily r$eemable1 directly
 or ?r\gh a protocol or simil>          
arrangem5t1 = a det]m9able am\nt ( #a or
 m o!r digital assets 7ref]r$ to 9 ?is  
subsection z und]ly+ digital assets71   
)\t reg>d to :e!r-- 7i7 su* receipt tok5
 & any und]ly+ digital asset are record$
 on ! same cryptographically secur$     
di/ribut$ l$g]1  7ii7 ! am\nt ( und]ly+ 
digital assets = :i* su* receipt tok5 is
 r$eemable v>ies ov] "t1 or  7iii7      
r$emption is subject to a wait+ p]iod1  
queue1 or simil> delay impos$ by !      

protocol4  7,b7 ,ti]$ receipt tok5s ,if 
any und]ly+ digital asset ) respect to a
 receipt tok5 is itself a receipt tok5  
or a bridg$ digital asset-- 7i7 !       
und]ly+ digital assets or ref]5ce       
digital asset ( su* asset %all be treat$
 z und]ly+ digital assets ( ! fir/      
receipt tok51 &  7ii7 rules simil> to ! 
rules ( subp>agraphs 7,b7 & 7,c7 (      
p>agraph 7#h7 %all apply4  7#h7 ,ref]5ce
 digital asset  7,a7 ,9 g5]al ,! t]m    
ref]5ce digital asset means1 ) respect  
to any bridg$ digital asset1 ! digital  
asset ref]r$ to 9 p>agraph 7#a77;,a74   
7,b7 ,special rule = rewrapp+s ,if1 b = 
?is subp>agraph1 ! ref]5ce digital asset
 ) respect to any bridg$ digital asset  
w\ld be a bridg$ digital asset 7ref]r$  
to 9 ?is p>agraph z ! l[]-ti] bridg$    
digital asset7-- 7i7 subp>agraph 7,a7   
%all be appli$ ) respect to ! l[]-ti]   
bridg$ digital asset1 &  7ii7 ! ref]5ce 
digital asset ) respect to su* l[]-ti]  
bridg$ digital asset %all be treat$ z ! 
ref]5ce digital asset ( su* bridg$      

digital asset4  7,c7 ,multiple wrapp+s  
,if1 aft] ! application ( subp>agraph   
7,b71 ! ref]5ce digital asset ) respect 
to ! l[]-ti] bridg$ digital asset is a  
bridg$ digital asset1 su* subp>agraph   
%all be reappli$ by treat+ su* l[]-ti]  
bridg$ digital asset z ! bridg$ digital 
asset4  7#i7 ,/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 to ! ext5t provid$
 by ! ,secret>y1 any activity :i* is    
sub/antially simil> to an activity      
describ$ 9 subp>agraph 7,a74  7#aj7     
,/ak+ rew>d  7,a7 ,9 g5]al ,! t]m /ak+  
rew>d means any additional units ( a    
digital asset1 or portions !re(1 t are  
creat$ or issu$ by ! protocol itself z  
"p ( validation & allocat$ to a taxpay] 
7directly or ?r\gh #a or m ag5ts or     
pools7 z a result ( ! taxpay]'s direct  
or indirect p>ticipation 9 digital asset
 validation support+ activities ( a     
di/ribut$ l$g]4  7,b7 ,exclusion =      

s]vice comp5sation  7i7 ,9 g5]al ,! t]m 
/ak+ rew>d %all n include any fee1      
commission1 spread1 or o!r am\nt receiv$
 = provid+ validation1 /ak+1 ex*ange1   
l5d+1 or o!r digital asset f9ancial     
s]vices to ano!r p]son4  7ii7 ,exception
 ,= purposes ( clause 7i71 a            
protocol-issu$ rew>d %all n be treat$ z 
comp5sation = provid+ digital asset     
f9ancial s]vices m]ely because ! taxpay]
 directly validates transactions or     
delegates digital assets to a validator4
  7#aa7 ,tok5iz$ digital asset ,! t]m   
tok5iz$ digital asset means any digital 
asset 7o!r ?an a qualifi$ ,u4,s4 doll>  
/ableco97 t is a digital repres5tation (
 all rights1 obligations1 or int]e/s 9 a
 tangible or intangible asset t is n    
itself a digital asset4  7#ab7 ,trad$   
digital asset ,except z o!rwise provid$ 
by ! ,secret>y1 ! t]m trad$ digital     
asset means any digital asset if-- 7,a7 
su* asset is fungible1  7,b7 quotations 
( su* asset are readily available or    
readily asc]ta9able on #a or m ex*anges 

& reflect trad+ 9 suffici5t volume & )  
suffici5t liquidity to provide reliable 
price discov]y1 &  7,c7 su* asset is    
ei!r-- 7i7 n a tok5iz$ digital asset1   
7ii7 a bridg$ digital asset ) respect to
 :i* ! ref]5ce digital asset is a trad$ 
digital asset1 or  7iii7 a receipt tok5 
) respect to :i* ea* und]ly+ digital    
asset is a trad$ digital asset4  7#ac7  
,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 subsection7 appli$ by sub/itut+     
doll>s = monet>y value ea* place x      
appe>s 9 su* section4  7#ad7 ,validation
 ,! t]m validate1 & any d]ivative ( su* 
t]m 7includ+ validation71 :5 us$ 9      
connection ) a digital asset            
transaction1 means p>ticipat+ 9 a       
cons5sus process ( a cryptographically  
secur$ di/ribut$ l$g] by propos+1 atte/+
 to1 v]ify+1 ord]+1 record+1 or o!rwise 
confirm+ transactions or blocks4  7#ae7 
,widely trad$ digital asset  7,a7 ,9    

g5]al ,except z o!rwise provid$ by !    
,secret>y1 ! t]m widely trad$ digital   
asset means1 = any taxable ye>1 any     
trad$ digital asset if-- 7i7 quotations 
= su* asset 7 readily available on an   
ex*ange = ! entirety ( ! imm$iately     
prec$+ cal5d> 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 ! imm$iately prec$+      
taxable ye>4  7,b7 ,special rule =      
bridg$ digital assets ,except z o!rwise 
provid$ by ! ,secret>y1 9 ! case ( any  
bridg$ digital asset1 su* asset %all be 
treat$ z a widely trad$ digital asset if
 ! ref]5ce digital asset ) respect to   
su* bridg$ 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 !  
,secret>y may exclude any asset t lacks 
reliable price discov]y or t ! ,secret>y
 det]m9es is at risk ( price            
manipulation4  7,d7 ,au?ority to adju/  
requirem5ts ,! ,secret>y may1 by        
regulation1 provide requirem5ts t apply 
9 lieu ( #a or m ( ! requirem5ts (      
clauses 7i7 ?r\gh 7iii7 ( subp>agraph   
7,a7 if ! ,secret>y det]m9es t1 due to  
*anges 9 m>ket conditions 7includ+ by   
reason ( ! enactm5t ( ,f$]al legislation
 relat+ to digital asset m>ket          
/ructure71 su* alt]native requirem5ts   
w\ld m effectively or effici5tly id5tify
 trad$ digital assets = :i* !re is      
consi/5t & reliable price discov]y4     
7,e7 ,special rule = receipt tok5s      
,except z o!rwise provid$ by !          
,secret>y1 a receipt tok5 %all be treat$
 z a widely trad$ digital asset if ea*  
und]ly+ digital asset ) respect to su*  
receipt tok5 is a widely trad$ digital  
asset4  7,f7 ,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  4  7b7
 ,con=m+ am5dm5ts  7#a7 ,section        
#fjde7;g77#c7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by /rik+ subp>agraph  
7,d74  7#b7 ,section #fjej;,i7d77#c7 (  
su* ,code is am5d$ by /rik+ 7z def9$ 9  
section #fjde7;g77#c77;,d774