A Republican bill with no cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill sets up specific tax rules for income earned from mining and staking digital assets like cryptocurrencies. It provides a default rule where newly minted digital assets are counted as ordinary income right when you get them. Alternatively, the bill allows taxpayers to make an election to delay paying taxes on these new digital assets until they actually sell or dispose of them. It also clarifies how investment trusts can engage in digital asset staking without losing their status as a trust. Finally, the legislation adds official definitions for terms like digital assets, mining, staking, and validation to the tax code.
Yes· 3 of 5
- Scored +3
Would business owners be better off under this?
Benefits businesses and independent operators engaged in cryptocurrency mining and validation.
- Scored +3
Does this make it easier to run a small business?
Offers miners and stakers clearer definitions and options regarding tax timing for newly minted digital assets.
- Scored +2
Would people in their twenties and thirties be better off under this?
Provides clearer guidelines for retail participants and younger demographics active in cryptocurrency.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Flexibility in Tax Timing: Under Section 1400W-2, taxpayers can elect to defer including the value of newly minted digital assets in their gross income until the assets are actually sold or disposed of. This could benefit individuals by allowing them to delay paying taxes on mined or staked rewards until they have cash from a sale.
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Clear Rules for Investment Trusts: Under Section 3, adding paragraph (7) to Section 7701(p) ensures that trusts can engage in digital asset staking and take steps to maintain liquidity without losing their legal status as a trust. This provides certainty for everyday investors who pool their resources through trusts to participate in staking.
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Defined Terms for Clarity: Under Section 4, the bill adds clear definitions for digital assets, mining, staking, and validation to the tax code. This benefits the public and officials by removing guesswork around what these online activities actually mean for tax purposes.
Potential Negative Impacts for People
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Immediate Tax Burden by Default: Under Section 1400W-1, the default rule requires taxpayers to include the fair market value of newly minted digital assets in their ordinary income right at the time of acquisition. This could burden individuals who receive crypto rewards that fluctuate wildly in value before they have a chance to sell them.
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Loss of Capital Gains Treatment on Deferred Assets: Under Section 1400W-2(b), if a taxpayer chooses the election to defer income and later sells those newly minted digital assets, any gain is treated as income from property that is not a capital asset. This means people might miss out on lower capital gains tax rates that usually apply to investments held over time.
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Exclusion for Certain Foreign Entities: Under Section 1400W-2(f), controlled foreign corporations, passive foreign investment companies, and certain foreign trusts or partnerships are blocked from using the deferral election. This creates a strict boundary that could penalize individuals or groups tied to international structures.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would business owners be better off under this? — Benefits businesses and independent operators engaged in cryptocurrency mining and validation. Would people in their twenties and thirties be better off under this? — Provides clearer guidelines for retail participants and younger demographics active in cryptocurrency.
- Economy And Finance
- Does this make it easier to run a small business? — Offers miners and stakers clearer definitions and options regarding tax timing for newly minted digital assets. Is this likely to grow the economy? — Provides clearer tax rules and definitions that support the digital asset and cryptocurrency sector.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — Establishes formal statutory definitions for digital asset activities within the tax code.
- 6/8/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House