Definitions

Section 7701 is amended— (1) by redesignating subsection (p) as subsection (q), and (2) by inserting after subsection (o) the following new subsection: (p) Definitions related to digital assets For purposes of this title— (1) Digital asset The term digital asset means, except as otherwise provided by the Secretary, any digital representation of value which is recorded on a cryptographically secured distributed ledger or any similar technology as specified by the Secretary. (2) Digital asset transaction The term digital asset transaction means any transfer of a digital asset recorded on the cryptographically secured distributed ledger (or similar technology) referred to in paragraph (1). (3) Digital asset validation supporting activities The term digital asset validation supporting activities means staking, mining, or similar activities in support of the validation of digital asset transactions. (4) Validation The term validate, and any derivative of such term (including validation), when used in connection with a digital asset transaction, includes the processes of proposing transactions for validation and verifying the validation of transactions. (5) Staking The term staking, when used in connection with a digital asset, means— (A) making such asset available in support of the validation of digital asset transactions, and (B) except as otherwise provided by the Secretary, any substantially similar activity. (6) Mining The term mining, when used in connection with a digital asset, means— (A) performing computations, or making available computing power, in support of the validation of digital asset transactions, and (B) except as otherwise provided by the Secretary, any substantially similar activity..