Digital Asset Tax Certainty Act

It is the sense of the Congress that the Secretary of the Treasury should strongly consider issuing (under the authority of section 7805 of the Internal Revenue Code of 1986, or other applicable provisions of such Code) regulations or other guidance to—

(1) provide simplified methods for determining basis in digital assets,

(2) specify appropriate methods for determining the fair market value of illiquid digital assets,

(3) provide for the appropriate application of section 954 of such Code with respect to digital assets, including digital assets which are also securities or commodities,

(4) provide for the appropriate application of subpart J of part III of subchapter N of chapter 1 of such Code (relating to foreign currency transactions) to digital assets,

(5) clarify what constitutes the active conduct of a trade or business of validating digital asset transactions (or conducting staking, mining, or similar activities in support of validating digital asset transactions),

(6) clarify the application of the provisions of such Code to a digital asset that is also a security or commodity,

(7) clarify the treatment of tokenized digital assets, and

(8) clarify the circumstances under which any of the following transactions constitute realization events: tokenization transactions, wrapping transactions, unwrapping transactions, forks, airdrops, and exchanges involving liquidity pool tokens or staking pool tokens.