What does Preamble of Tax Clarity for Mining and Staking Act do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to provide rules for taxation of income relating to the mining and staking of digital assets, and for other purposes,' aims to modify the Internal Revenue Code of 1986. The bill's purpose is to establish rules for the taxation of income derived from the mining and staking of digital assets.

What does SHORT TITLE; ETC. of Tax Clarity for Mining and Staking Act do?

This Act is formally titled the ``Tax Clarity for Mining and Staking Act'','' and it amends or repeals sections of the Internal Revenue Code of 1986. References to sections or provisions within this Act are considered to be references to sections or provisions of the Internal Revenue Code of 1986 unless otherwise specified.

What does TREATMENT OF CERTAIN DIGITAL ASSETS RECEIVED IN CONNECTION WITH of Tax Clarity for Mining and Staking Act do?

This section amends Chapter 1 of the Internal Revenue Code by inserting a new subchapter W concerning newly minted digital assets received in connection with the validation of digital asset transactions. It establishes rules for the taxation of newly minted digital assets, including whether they are included in gross income and how acquisition costs are treated. Taxpayers can elect to defer the inclusion of income and capitalize costs related to qualified newly minted digital assets. The section outlines rules for the recognition and character of gain or loss on the disposition of qualified newly minted digital assets. It addresses sourcing rules for digital assets acquired in connection with validating digital asset transactions, distinguishing between U.S. residents and nonresidents. The section also modifies rules related to partnerships holding newly minted digital assets and coordination with the Qualified Business Income (QBI) deduction. The amendments apply to assets acquired in taxable years beginning after the date of enactment of this Act.

What does INVESTMENT TRUSTS ENGAGED IN DIGITAL ASSET STAKING. of Tax Clarity for Mining and Staking Act do?

This section amends Section 7701(p) of the Internal Revenue Code to address the status of investment trusts engaged in digital asset staking. The amendment clarifies that an entity or arrangement will not be deemed to fail as a trust solely because the trustee engages in digital asset staking activities. Permissible activities include staking digital assets, retaining or distributing assets received from staking, determining which assets to stake, and maintaining sufficient liquidity for distributions. The provision excludes entities engaged in the active conduct of a trade or business of validating digital asset transactions. The Secretary of the Treasury is authorized to issue regulations or guidance to implement this paragraph. The amendments apply to taxable years ending after the date of enactment of this Act.

What does DEFINITIONS. of Tax Clarity for Mining and Staking Act do?

This section amends Section 7701 of the Internal Revenue Code. It redesignates existing subsection (p) as subsection (q). It inserts a new subsection (p) defining terms related to digital assets. The term 'digital asset' is defined as any digital representation of value recorded on a cryptographically secured distributed ledger or similar technology, subject to the Secretary's discretion. A 'digital asset transaction' is defined as any transfer of a digital asset recorded on such a ledger. ‘Digital asset validation supporting activities’ includes staking, mining, or similar activities supporting transaction validation. ’Validate’ includes proposing and verifying transactions. ’Staking’ is defined as making a digital asset available to support transaction validation, or a substantially similar activity. ’Mining’ is defined as performing computations or making computing power available to support transaction validation, or a substantially similar activity.

Back to bills

Tax Clarity for Mining and Staking Act

Last updated: 6/8/2026 · Introduced: 6/8/2026

Author: Mike Carey (R-OH)

TL;DR (AI)

This bill establishes tax rules for income derived from the mining and staking of digital assets, including how newly minted digital assets are treated and how acquisition costs are handled.
It clarifies that investment trusts engaging in digital asset staking will not automatically be disqualified as trusts, allowing them to participate in these activities.
The bill defines key terms related to digital assets, such as 'digital asset,' 'staking,' and 'mining,' to provide clarity for tax purposes.

119th Congressin committeeOfficial page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title; etc., and 3 more.

5 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account