Sec. 204. Decentralized autonomous organizations
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Section 7701(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: The default classification of a decentralized autonomous organization shall be as a business entity which is not a disregarded entity. The following shall not be considered a business activity of such organization for purposes of determining whether such organization is described in section 501(c)(7): Treasury management, including mining and staking of digital assets (as defined in section 9801 of title 31, United States Code).
Raising funds for a charitable purpose. The term decentralized autonomous organization means an organization— which utilizes smart contracts (as defined in section 9801 of title 31, United States Code) to effectuate collective action for a business, commercial, charitable, or similar entity, governance of which is achieved primarily on a distributed basis, and which is properly incorporated or organized under the laws of a State or foreign jurisdiction as a decentralized autonomous organization, cooperative, foundation, or any similar entity. .
Except as provided by subsection (c), the amendments made by this section shall apply to taxable years beginning after December 31, 2022.