Sec. 804. Tax treatment of crypto asset lending agreements and related matters
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/bill/118/s/2281/is/section-804·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subsection
(a)of section 1058 of the Internal Revenue Code of 1986 is amended by striking (as defined in section 1236(c)) . Paragraph
(1)of subsection
(b)of section 1058 of the Internal Revenue Code of 1986 is amended by inserting , including a fixed-term transfer that occurs in the ordinary course of a securities lending or investment management business after transferred . Subsection
(c)of section 1058 of the Internal Revenue Code of 1986 is amended by adding at the end the following: All appropriate basis adjustments to an agreement under subsection
(b)shall be made, as determined by the Secretary, including upon the return of the lent securities to the taxpayer. . Section 1058 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsections: For purposes of this section, the term securities has the meaning given such term by section 1236(c), except that such term includes any crypto asset (as defined in section 9801 of title 31, United States Code) and, with respect to a crypto asset, does not require a call option. An amount equal to the income which would otherwise accrue to the lender but for a lending transaction under this section shall be included in the gross income of the lender. . Nothing in this section, or any amendments made by this section, shall be construed to create any inference with respect to the classification of any crypto asset as a security under the Securities Act of 1933 ( 15 U.S.C. 77a et seq. ) or the Securities Exchange Act of 1934 ( 15 U.S.C. 78a et seq. ). The Secretary of the Treasury (or the Secretary’s delegate) may adopt rules to implement the amendments made by this section, including the application of the amendments made by this section to forks, airdrops, and similar subsidiary value. The amendments made by this section shall apply to sales and exchanges in taxable years beginning after the date of enactment of this Act.
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