Sponsors
11 Republican
Ted CruzSenator · TX
This bill amends the Internal Revenue Code of 1986 to allow for the inflation-indexing of capital gains on certain assets held for over three years. It explicitly defines "digital assets" as any natively electronic asset recorded on a cryptographically secured distributed ledger and designed to confer only economic or access rights. This indexing would adjust the asset's cost basis for inflation, reducing the taxable capital gain upon sale.
This bill is highly beneficial for the crypto industry as it provides a clear and favorable tax treatment for digital assets. By allowing for the indexing of a digital asset's cost basis to account for inflation, it reduces the effective capital gains tax burden on long-term holders, ensuring they are taxed only on real gains. The explicit inclusion and definition of "digital assets" within federal tax law also contribute significantly to regulatory clarity, reducing ambiguity for investors and builders. This measure incentivizes long-term investment in digital assets, potentially fostering greater adoption and stability within the crypto market. The three-year holding period encourages HODLing rather than short-term speculation, while the documentation requirement is a standard compliance aspect.
Every member who has sponsored, cosponsored or voted on this bill. Pick a vote to see how each member voted on it, or narrow by party, name or state.
1 Republican
2 Republicans
