Certain trading in digital assets not treated as a trade or business within the United States

(a) In general Section 864(b)(2) of the Internal Revenue Code of 1986 is amended by redesignating subparagraph (C) as subparagraph (D) and by inserting after subparagraph (B) the following new subparagraph: (C) Digital assets (i) In general Trading in traded digital assets through a resident broker, commission agent, custodian, or other independent agent. (ii) Trading for taxpayer's own account Trading in traded digital assets for the taxpayer's own account, whether by the taxpayer or the taxpayer's employees or through a resident broker, commission agent, custodian, staking provider, or other agent, and whether or not any such employee or agent has discretionary authority to make decisions in effecting the transactions. This clause shall not apply in the case of a dealer in covered digital assets (as defined in section 475(g)(4)(B)).. (b) Conforming amendments (1) Subparagraph (D) of section 864(b)(2) of such Code (as redesignated by subsection (a)) is amended— (A) by striking subparagraphs (A)(i) and (B)(i) and inserting subparagraphs (A)(i), (B)(i), and (C)(i), and (B) by striking or in commodities and inserting in commodities, or in traded digital assets. (2) The heading of section 864(b)(2) of such Code is amended by striking or commodities and inserting, commodities, or digital assets. (c) Effective date (1) In general The amendments made by this section shall apply to taxable years beginning after December 31, 2026. (2) No inference The amendments made by this section shall not be construed to create any inference with respect to the application of section 864(b)(2) of the Internal Revenue Code of 1986 to the trading of digital assets for any period beginning before the date described in paragraph (1).