Sponsors (4)
The bill provides targeted tax clarity and consumer relief for many routine crypto activities while extending securities-like tax rules and new reporting regimes that increase compliance burdens and concentrate broad implementation authority with Treasury — and many provisions are temporary, creating material uncertainty for long-term market participants.
Most taxpayers and businesses that hold or interact with tokenized or digital assets get clearer tax classifications because the bill defines 'digital asset', 'tokenized property', and 'actively traded digital asset', reducing ambiguity about how different crypto-related items are treated.
Everyday consumers using crypto for small personal purchases can exclude up to $300 of gain (and recognize losses up to $300) per transaction (capped at $5,000 annually), reducing taxable events and simplifying recordkeeping for routine spending.
Lenders, borrowers, and intermediaries in digital assets get clearer tax rules for lending/loaned assets (recognition of accrued lending income, nonrecognition for certain transfers, and required basis adjustments on return), reducing uncertainty over tax outcomes for lending and lending-like arrangements.
Nearly all taxpayers and businesses dealing with digital assets face substantial regulatory uncertainty because the bill delegates broad interpretive and implementation authority to the Treasury Secretary and IRS, leaving many important details to future rulemaking.
Many provisions are temporary (sunset around 2035) or have delayed applicability, creating pervasive long-term uncertainty for market participants and complicating business and investment planning.
Lenders and other parties that lend digital assets may owe immediate tax on imputed or accrued lending income, and mark-to-market treatment can produce annual taxable income increases even without cash sales, increasing tax bills for illiquid or volatile positions.
Based on analysis of 7 sections of legislative text.
Defines and treats digital assets for tax purposes; creates small-payment exclusions, expands wash-sale and mark-to-market rules, sets rules for lending, validation income, and charitable gifts.
Introduced June 30, 2025 by Cynthia M. Lummis · Last progress June 30, 2025
Creates a new, broad tax framework for "digital assets": it defines digital assets and "actively traded" digital assets for tax law, excludes small personal crypto payments from gains/losses up to per-transaction and annual limits, expands wash-sale and dealer/trader tax rules to cover specified digital assets, allows a mark-to-market election for dealers and traders in actively traded digital assets, and lets validators (miners/stakers) defer recognition of income from block production until the produced asset is sold. The bill adds special rules for lending, forks/airdrops, charitable gifts of appreciated digital assets, and gives the Treasury authority to write implementing regulations; many provisions are temporary and expire at the end of 2035.