Bill · S. 2207· Senate(119-S-2207)
A bill to amend the Internal Revenue Code of 1986 to reform the treatment of digital assets.
- Introduced
- 6/30/2025
- Last activity
- 6/30/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Cynthia Lummis
- Cosponsors
- - 3 - 0
- Introduced
- In Committee
What this bill would do
This bill proposes several changes to the Internal Revenue Code of 1986 regarding the treatment of digital assets. It establishes a formal definition for digital assets and "actively traded digital assets." The legislation introduces a de minimis exclusion for gains or losses on personal digital asset transactions up to certain thresholds. It also addresses tax treatments for digital asset lending, wash sale rules for specified assets, and mark-to-market elections for dealers and traders. Additionally, it provides for the deferral of income recognition for digital asset mining and staking activities. Finally, it updates rules regarding charitable contributions involving digital assets.
Yes· 3 of 7
Does this cut taxes for middle-income families?+3
The de minimis exclusion for small personal digital asset transactions provides minor tax relief for everyday consumers.
Would middle-income households be better off under this?+2
The de minimis tax exclusion for small digital asset transactions benefits middle-class consumers.
Would high-income households be better off under this?+2
The bill provides tax benefits such as income deferral for mining and staking activities.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Relief on Small Transactions: Individuals can exclude gains or losses from the gross income of personal transactions used to purchase products or services, provided the total value of the sale or loss does not exceed $300. This applies to transactions that are not for cash or other digital assets (Section 2(a)).
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Income Deferral for Miners and Stakers: People engaging in digital asset validation, such as mining and staking, do not have to include income from these activities in their gross income until the taxable year they sell or dispose of the assets produced (Section 6(a)).
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Enhanced Charitable Giving: The bill allows for the inclusion of "actively traded digital assets" in charitable contribution rules and creates a category for "qualified appreciated digital assets" for contributions to private foundations (Section 7).
Potential Negative Impacts for People
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Recordkeeping Burdens: Taxpayers using the de minimis exclusion for small digital asset transactions are required to maintain books, records, or separate wallets and accounts to distinguish eligible transactions from those that are not (Section 2(d)).
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Restrictions on Loss Deductions: The bill implements "wash sale" rules for specified assets, meaning a taxpayer cannot claim a loss deduction if they acquire substantially identical assets within a specific window of time around the sale (Section 4(a)).
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Taxation of Lending Income: For those involved in digital asset lending agreements, income that would otherwise accrue to the lender must be included in their gross income (Section 3(e)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For High Income Households+2Good For High Net Worth Individuals+2Good For Middle Class Households+2Good For Business Owners+1
- Economy And Finance
- Reduces Middle Class Taxes+3Reduces Capital Gains Tax+2Improves Economic Growth+1
- 12/1/2025
- 1 Cosponsor added.
- 9/2/2025
- 2 Cosponsors added.
- 6/30/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
Marsha BlackburnRepublican · Tennessee
John CornynRepublican · Texas
Bill CassidyRepublican · Louisiana