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. Section 1091 of the Internal Revenue Code of 1986 is amended—
(1) by striking stock or securities each place it appears and inserting specified assets, and
(2) by striking shares of each place it appears.
(b) Specified asset. Section 1091 of such Code is amended by adding at the end the following new subsections:
(g) Specified asset. For purposes of this section—
(1) In general. The term specified asset means—
(A) any stock or security, and
(B) any digital asset.
(2) Contracts and options. Except as otherwise provided in regulations, the term specified asset shall include any contract or option to acquire or sell any specified asset described in paragraph (1).
(h) Treatment of certain assets as substantially identical
(1) In general. For purposes of determining whether an asset is substantially identical to any digital asset under this section, except to the extent provided by regulations prescribed by the Secretary—
(A) the determination of whether an asset is substantially identical to any other asset shall be made on the basis of the economic exposure of the asset,
(B) the mere fact that an asset may have different or no voting rights shall not prevent the asset from being substantially identical to any other asset,
(C) the mere fact that an asset may trade on a different exchange (or no exchange) or a different blockchain (or no blockchain) shall not be taken into account, and
(D) any asset that would not otherwise be treated as substantially identical to another asset shall not be so treated merely because the asset is based on the same or substantially similar protocol or computer code.
(2) No inference. Nothing in this subsection shall create any inference as to whether any property is substantially identical to any property that is not a digital asset or as to whether any property was substantially identical to any digital asset before the effective date of this subsection.
(c) Conforming amendments
(1) Sections 312(f)(1), 1256(f)(5), and 6045(g)(2)(B)(ii) are each amended by striking stock or securities and inserting specified assets.
(2) Section 1091(a) is amended by striking the last sentence.
(3) Section 1091(e) (as amended by subsection (a)) is amended to read as follows:
(e) Certain short sales of specified assets and specified asset futures contracts To sell. Rules similar to the rules of subsection (a) shall apply to any loss realized on the closing of a short sale of (or the sale, exchange, or termination of a specified asset futures contract to sell) specified assets if, within a period beginning 30 days before the date of such closing and ending 30 days after such date— For purposes of this subsection, the term specified asset futures contract has the meaning provided by section 1234B(c).
(1) substantially identical specified assets were sold, or
(2) another short sale of (or specified asset futures contracts to sell) substantially identical specified assets was entered into.
(4) The heading of section 1091 is amended by striking stock or securities and inserting specified assets.
(5) The headings of subsections (b), (c), and (d) of section 1091 are each amended by striking Stock each place it appears and inserting Specified Assets.
(6) The item relating to section 1091 in the table of sections for part VII of subchapter O of chapter 1 is amended by striking stock or securities and inserting specified assets.
(d) Effective date. The amendments made by this section shall apply to sales, dispositions, and terminations after the date of enactment of this Act.