Sec. 203. Sources of income
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Paragraph
(2)of section 864(b) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph
(C)as subparagraph
(D)and by inserting after subparagraph
(B)the following new subparagraph: Trading in digital assets through a resident broker, commission agent, custodian, digital asset exchange, or other independent agent. Trading in digital assets for the taxpayer’s own account, whether by the taxpayer or the taxpayer's employees or through a resident broker, commission agent, custodian, digital asset exchange, or other agent, and whether or not any such employee or agent has discretionary authority to make decisions in effecting the transactions. This clause shall not apply in the case of a dealer in digital assets. For purposes of this subparagraph— The term digital asset exchange means a centralized or decentralized platform which facilitates the transfer of digital assets. The term digital asset has the meaning given such term in section 9801 of title 31, United States Code. This subparagraph shall apply only if the digital assets are of a kind customarily dealt in on a digital asset exchange and if the transaction is of a kind customarily consummated at such exchange. . Subparagraph
(D)of section 864(b)(2) of the Internal Revenue Code of 1986, as redesignated by subsection (a), is amended by striking (A)(i) and (B)(i) and inserting (A)(i), (B)(i), and (C)(i) . The amendments made by this section shall apply to sales and exchanges after December 31, 2022.