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Creates a comprehensive set of federal tax rules for digital assets. It defines “digital asset” and “actively traded digital asset,” establishes a small de minimis exclusion for personal payments made with crypto, expands wash-sale and mark-to-market rules to cover certain digital assets, treats income from lending and validation (mining/staking) of digital assets in specified ways, and adds rules for charitable gifts of appreciated digital assets. Many provisions take effect for transactions or taxable years after the end of 2025 (or after enactment) and most are temporary, generally sunsetting at the end of 2035. The bill mainly changes how gains, losses, and income tied to digital assets are reported and taxed, imposes new recordkeeping and reporting expectations for brokers/exchanges, and gives Treasury authority to write implementing regulations and guidance on definitions and application of the new rules.
The bill offers clearer, tailored tax rules and short‑term relief for many crypto activities (helping casual users, traders, validators, and nonprofits) but does so by expanding Treasury authority, adding new reporting and recordkeeping obligations, creating potential cash‑flow tax hits, and relying on temporary rules that leave long‑term uncertainty and administrative burdens for taxpayers and businesses.
Many taxpayers, brokers, and platforms get clearer, more specific federal tax rules for digital assets (classification, broker reporting authority, and guidance on forks/airdrops/lending/donations), reducing legal uncertainty for most crypto activities.
Casual users making small personal purchases with digital assets can exclude minor gains/losses (up to $300 per transaction and $5,000 per year, inflation‑adjusted after 2026), reducing tax reporting and liability for day-to-day crypto payments.
Miners and validators (people who receive newly produced tokens) may defer recognizing income until they sell or dispose of the produced assets, easing cash‑flow timing and simplifying immediate tax obligations.
The bill significantly expands Treasury/IRS rulemaking authority and defines broad categories of digital assets, which is likely to produce complex regulations, ongoing uncertainty during rulemaking, and compliance costs for taxpayers and businesses.
Many key provisions are temporary (sunset or phased in through 2035/2036), creating long‑term uncertainty, potential future tax changes, and a risk of a large 'tax spike' or compliance shift when temporary rules expire.
Treating lending proceeds, mark-to-market gains, or deferred mining/staking receipts as taxable income (or forcing immediate inclusion) can create cash‑flow problems—taxes may be due before equivalent value is received—raising tax bills and liquidity stresses for lenders, traders, and validators.
Introduced June 30, 2025 by Cynthia M. Lummis · Last progress June 30, 2025