Sponsors (9)
The bill brings meaningful clarity and certain targeted tax reliefs for digital‑asset users (definitions, de minimis treatment, stablecoin rules, elective accounting, staking trust safe‑harbors), but it extends traditional tax rules and reporting requirements widely across crypto activity—raising compliance costs, enforcement powers, and sometimes tax bills for traders, validators, and cross‑border actors.
Nearly all taxpayers, tax preparers, and financial intermediaries: the bill provides clearer statutory definitions, a short title/table of contents, and cross-references for digital-asset terms, reducing ambiguity when interpreting and applying tax rules.
Active dealers, traders, and intermediated traders: the bill authorizes elective mark-to-market accounting and creates a trading safe harbor for broker/custodian-mediated activity, simplifying year‑end valuation and reducing uncertainty about whether trading is U.S. activity.
Many users of digital payments and small-amount recipients (tips, micro-payments): transfers under the de minimis threshold (~$10) can be excluded from gross income, and qualifying platforms/payors face reduced reporting/withholding obligations, lowering immediate tax and compliance burdens for small payments.
Many retail and active crypto traders: applying wash‑sale, constructive‑sale, and related rules to most traded digital assets will increase tax complexity, limit deductible losses, and likely raise taxpayers' tax bills and recordkeeping obligations.
Individual taxpayers and brokers/platforms: the bill creates extensive new reporting and basis‑tracking obligations (including 'unwrapping' rules and aggregate basis-verification), increasing compliance costs, administrative burdens, and potential privacy exposure for wide swaths of users and intermediaries.
Taxpayers and intermediaries: broad Treasury authority and multiple transitional guidance delegations mean key compliance details may change after transactions occur, creating uncertainty and implementation risk while taxpayers wait for regulations.
Based on analysis of 8 sections of legislative text.
Creates statutory tax rules for many digital assets: de minimis fee nonrecognition, new asset definitions, wash-sale and broker-reporting coverage, mark-to-market option for traders, staking/validation sourcing, and related transitions.
Official title: To amend the Internal Revenue Code of 1986 to reform the tax treatment of digital assets, and for other purposes.
Introduced September 14, 2026 by Jason Smith · Last progress September 14, 2026
Creates a broad set of tax rules for digital assets that (1) excludes very small ‘de minimis’ digital-asset payments from taxable income, (2) defines and classifies different types of digital assets (including traded, widely traded, tokenized, and stablecoin categories), (3) extends existing tax rules (wash-sale, broker reporting, mark-to-market election, sourcing and character rules for staking/validation activity) to many digital assets, and (4) adjusts charitable donation, gambling-loss, and broker-reporting rules tied to crypto activity. Many changes amend the Internal Revenue Code and include transition rules and Treasury rulemaking authority. The bill affects individual and business taxpayers who hold, trade, validate, stake, or receive digital assets; brokers, custodians, and staking providers who report transactions; and tax administrators who will implement new definitions, filing exceptions, and guidance. Effective dates vary by provision, generally applying to taxable years after enactment with some specific dates (e.g., Dec 31, 2025) and transitional rules through 2028.