H.R. 9176, Cryptocurrency Tax Preferencing. Quorum's AI analysis reads it as a net cost — and names who bears it.
H.R. 9176 · Net cost
What it does
This bill amends the tax code to create a consistent set of rules for trading digital assets (cryptocurrencies and similar blockchain-based tokens). It allows traders and dealers to use mark-to-market accounting for digital assets the same way they do for stocks and commodities, lets certain digital asset traders claim they are not engaged in a U.S. trade or business for tax purposes, and defines key terms like 'traded digital asset' and 'widely traded digital asset' for tax purposes. The bill benefits cryptocurrency traders and dealers by giving them tax treatment parity with traditional securities traders and creating a safe harbor from U.S. taxation for certain trading activity.
The analysis names cryptocurrency traders and dealers — and 4 more groups — among the beneficiaries.
The cost
Section 4's safe harbor allows digital asset traders to claim they are not engaged in a U.S. trade or business even when trading for their own account through U.S. brokers, potentially allowing them to avoid U.S. taxation on trading gains.
The analysis put a high warning level on this bill. Transparency scores 55%, and the analysis found no provisions unrelated to the bill's subject.
Who is behind it
Filed by David Kustoff.
The week in bills
One email, Sunday: what Congress passed, what it changed, and who paid.
One link arrives to confirm the address. It is used for this email and nothing else, and every issue carries an unsubscribe link.