H.R. 10357
Digital Asset Tax Certainty Act
Official summary
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Text of the bill
I Removing tax barriers to the use of digital assets as a medium of exchange
II Providing parity between digital assets and comparable traditional financial assets
III Applying existing tax anti-abuse rules to digital assets
(a) Distributions of traded digital assets from a partnership to a partner
(1) Traded digital assets treated as marketable securities. Section 731(c)(2)(A) is amended—
(A) by striking means financial instruments and inserting
means—
(i) financial instruments
(B) by striking the period at the end and inserting , and, and
(C) by adding at the end the following new clause:
(ii) traded digital assets (determined without regard to clause (iii) of section 7701(p)(2)(A)) other than specified stablecoins (as defined in subsection (d)(4)(A)).
(2) Treatment of distributions of specified stablecoins. Section 731 is amended—
(A) by redesignating subsection (d) as subsection (e), and
(B) by inserting after subsection (c) the following new subsection:
(d) Treatment of specified stablecoins
(1) In general. For purposes of subsection (a)(1) and section 737—
(A) the term money includes specified stablecoins, and
(B) such specified stablecoins shall be taken into account at their fair market value as of the date of the distribution.
(2) Basis of securities distributed. Except as otherwise provided by the Secretary—
(A) In general. For purposes of subsection (c)(4), the term marketable securities includes specified stablecoins (other than exempt U.S. dollar stablecoins).
(B) Exempt U.S. dollar stablecoins. In the case of any exempt U.S. dollar stablecoin, paragraph (1) shall be applied by substituting sections 732, 733, and 737 for section 737.
(3) Application of certain other rules. Except as otherwise provided by the Secretary, for purposes of paragraphs (5) and (6) of subsection (c), the term marketable securities includes specified stablecoins.
(4) Definitions. For purposes of this subsection—
(A) Specified stablecoin. The term specified stablecoin means any digital asset which is designed to track the value of the functional currency of the partner to which such digital asset is distributed.
(B) Exempt U.S. dollar stablecoin. The term exempt U.S. dollar stablecoin means any specified stablecoin if—
(i) the functional currency referred to in subparagraph (A) with respect to such stablecoin is the dollar, and
(ii) no gain or loss would have been recognized by reason of section 1063 if the partnership had sold such stablecoin for its redemption value (as defined in section 1063(d)) immediately before distribution.
(5) Regulations. The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this subsection, including regulations or other guidance to prevent the avoidance of such purposes.
(3) Conforming amendments. Section 737(e) is amended—
(A) by inserting and specified stablecoins after marketable securities,
(B) by striking section 731(c) and inserting section 731, and
(C) by inserting and specified stablecoins after marketable securities in the heading thereof.
(4) Effective date. The amendments made by this subsection shall apply to distributions made after December 31, 2026.
(b) Traded digital assets taken into account in determining investment company status
(1) In general. Section 351(e)(1)(B) is amended—
(A) by redesignating clauses (iv) through (viii) as clauses (v) through (ix), respectively, and
(B) by inserting after clause (iii) the following new clause:
(iv) any traded digital asset (determined without regard to clause (iii) of section 7701(p)(2)(A)),
(2) Conforming amendments
(A) Section 351(e)(1)(B)(v) (as redesignated by paragraph (1)) is amended by striking clause (v) or (viii) and inserting clause (vi) or (ix).
(B) Section 351(e)(1)(B)(vii) (as redesignated by paragraph (1)) is amended by striking clause (viii) and inserting clause (ix).
(C) Section 351(e)(1)(B)(viii) (as redesignated by paragraph (1)) is amended by striking clauses (i) through (v) or clause (viii) and inserting clauses (i) through (vi) or clause (ix).
(D) Section 351(e)(1)(B) is amended in the matter following clause (ix) (as redesignated by paragraph (1)) by striking clauses (i) through (v) and inserting clauses (i) through (vi).
(3) Effective date. The amendments made by this subsection shall apply to transfers made after December 31, 2026.
(c) Certain stablecoin lending treated as indebtedness
(1) In general. Subpart D of part V of subchapter P of chapter 1 is amended by adding at the end the following new section:
1289. Stablecoin lending
(a) In general. Except as otherwise provided by the Secretary, for purposes of this title, the lending, rental, sale and repurchase, or other transfer of specified stablecoins shall be treated as indebtedness (and transfers made pursuant to such lending, rental, sale and repurchase, or other transfer shall be treated as interest) in the same manner, and to the same extent, as the equivalent transfer of money.
(b) Specified stablecoin. Except as otherwise provided by the Secretary, for purposes of this section, the term specified stablecoin means any digital asset which is designed to track the value of any currency or currencies.
(c) Special rule for sale and repurchases involving currency or different types of specified stablecoin. Except as otherwise provided by the Secretary, for purposes of this section, a sale (or repurchase) of a specified stablecoin in connection with a repurchase (or sale) of currency or a different type (determined under rules similar to the rules of section 1051(b)(2)) of specified stablecoin shall be treated as a sale and repurchase of a specified stablecoin.
(d) Regulations. The Secretary may issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance providing rules for determining the source of interest income if the payor is unknown and backup withholding and reporting rules if the recipient of an interest payment is unknown.
(e) Cross reference. For special rules applicable to transfers of specified stablecoins that are indebtedness under this section, see sections 1271 through 1288.
(2) Clerical amendment. The table of sections for subpart D of part V of subchapter P of chapter 1 is amended by adding at the end the following new item:
Sec. 1289. Stablecoin lending.
(3) Effective date. The amendments made by this subsection shall apply to taxable years beginning after December 31, 2026.
(d) Digital assets not treated as section 197 intangibles
(1) In general. Section 197(e) is amended by adding at the end the following new paragraph:
(8) Digital assets. Except as otherwise provided by the Secretary to prevent abuse, any digital asset.
(2) Effective date. The amendment made by this subsection shall apply to digital assets acquired after the date of the introduction of this Act.
(e) Application of straddle rules to traded digital assets, etc
(1) In general. Section 1092(d)(1) is amended—
(A) by striking means any and inserting
means—
(A) any
(B) by striking the period at the end and inserting , and, and
(C) by adding at the end the following new subparagraph:
(B) any traded digital asset (determined without regard to clause (iii) of section 7701(p)(2)(A)).
(2) Effective date. The amendments made by this subsection shall apply to positions established after the date of the enactment of this Act.
(f) Backup withholding on illiquid digital assets paid for digital asset validation supporting activities
(1) In general. Section 3406(h) is amended by adding at the end the following new paragraph:
(11) Certain illiquid digital assets paid for digital asset validation supporting activities
(A) In general. In the case of an other reportable payment that consists of specified illiquid digital assets, except to the extent provided by the Secretary in regulations or other guidance, the payor shall be treated as having deducted and withheld from such payment the amount specified in subsection (a)(1) (and the proceeds of the liquidation referred to in clause (ii) shall be treated as the amount deducted and withheld under subsection (a)(1)) if such payor—
(i) holds the applicable percentage of such specified illiquid digital assets (hereafter referred to as the withheld amount of digital assets) in a manner that prevents the recipient from using or withdrawing the withheld amount of digital assets,
(ii) liquidates the withheld amount of digital assets at fair market value not later than the close of the first business day following the close of such fixed period, and
(iii) deposits the proceeds of such liquidation at the time and in the same manner as would be required with respect to an amount withheld on the date of such liquidation.
(B) Specified illiquid digital asset. For purposes of this paragraph, the term specified illiquid digital assets means digital assets that are—
(i) transferred to the recipient in exchange for digital asset validation supporting activities, and
(ii) restricted from being sold, exchanged, transferred, or otherwise disposed of, for a fixed period that ends after the date of such transfer.
(C) Applicable percentage. For purposes of this paragraph, the term applicable percentage means the rate of tax referred to in subsection (a)(1), expressed as a percentage.
(2) Effective date. The amendment made by this subsection shall apply to specified illiquid digital assets received after December 31, 2026.
IV Clarifying the tax treatment of mining and staking
V Ensuring that owners and users of digital assets face an appropriate tax compliance burden
VI Definitions; regulations; rules of construction
VII Full House Act