H.R. 10357

Digital Asset Tax Certainty Act

Sponsor: Jason Smith

8 cosponsors
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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

Sec. 201. Transfers of traded digital assets pursuant to a lending agreement

(a) In general. Subsections (a) and (b) of section 1058 are each amended by striking securities each place it appears and inserting specified assets.

(b) Specified assets. Section 1058 is amended by adding at the end the following new subsection:

Text this section adds to the law

(d) Specified assets. For purposes of this section, the term specified assets means—

(1) securities (as defined in section 1236(c)), and

(2) traded digital assets.

(c) Treatment of certain legal entitlements and obligations which accrue during period of agreement. Section 1058(b)(2), as amended by subsection (a), is amended—

(1) by striking require that payments and inserting

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require that—

(A) payments

(2) by inserting and after transferor;, and

(3) by adding at the end the following new subparagraph:

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(B) in the case of any transfer of traded digital assets—

(i) payments shall be made to the transferor of amounts equivalent to, except as otherwise provided by the Secretary, all property and other legal entitlements which the owner of the traded digital assets is entitled to receive during the period described in subparagraph (A), and

(ii) the transferor shall assume all obligations imposed on the owner of such traded digital assets during the period described in subparagraph (A);

(d) Conforming amendments

(1) Section 1058(a) is amended by striking (as defined in section 1236(c)).

(2) The heading of section 1058, and the item relating to section 1058 in the table of sections for part IV of subchapter O of chapter 1, are each amended by striking securities and inserting specified assets.

(e) Effective date. The amendments made by this section shall apply to transfers made after the date of the enactment of this Act.

III Applying existing tax anti-abuse rules to digital assets

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