H.R. 8899
Digital Asset PARITY Act
Sponsor: Max L. Miller
3 cosponsors
Official summary
No official summary yet.
Text of the bill
(a) In general. Subsection (a) of section 1058 of the Internal Revenue Code of 1986 is amended by inserting , or eligible digital assets after (as defined in section 1236(c)).
(b) Basis. Subsection (c) of section 1058 of the Internal Revenue Code of 1986 is amended by adding at the end the following: In the case of a basis adjustment to securities or eligible digital assets with respect to which an agreement is in place which meets the requirements of subsection (b), such adjustment shall be made by factoring in the return to the transferor of securities identical to the securities transferred..
(c) Substitute payments. Section 1058 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
(d) Substitute payments. Any payment made to a lender pursuant to an agreement described in subsection (b) in lieu of staking rewards, transaction fees, protocol distributions, or other amounts that would otherwise be payable with respect to a lent digital asset shall be included in the gross income of the lender in the same manner as if such amounts had been received directly by the lender.
(d) Rule of construction. Nothing in this section, or any amendments made by this section, shall be construed to create any inference with respect to the classification of any digital asset as a security under the Securities Act of 1933 (15 U.S.C. 77a et seq.) or the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.).
(e) Rulemaking authority. The Secretary of the Treasury (or the Secretary’s delegate) may adopt rules to implement the amendments made by this section, including the application of the amendments made by this section to forks, airdrops, and similar subsidiary value.
(f) Effective date. The amendments made by this section shall apply to exchanges in taxable years beginning after the date of enactment of this Act.