H.R. 9178

119 HR 9178 IH: Less Tax Paperwork for Digital Asset Owners Act
 U.S. House of Representatives
 2026-06-08
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 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 I  119th CONGRESS  2d Session  H. R. 9178  IN THE HOUSE OF REPRESENTATIVES   June 8, 2026   Mr. Yakym  introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to reduce certain tax compliance burdens with respect to digital asset ownership, and for other purposes.
1.
Short title; etc
(a)
Short title
This Act may be cited as the   Less Tax Paperwork for Digital Asset Owners Act  .
(b)
References
Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
(c)
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; etc.
Sec. 2. Treatment of de minimis digital asset network fees.
Sec. 3. Simplified accounting for gain and loss on widely traded digital assets.
Sec. 4. Treatment of U.S. dollar stablecoin transactions.
Sec. 5. Broker requirements.
Sec. 6. Definitions.
2.
Treatment of de minimis digital asset network fees
(a)
In general
Part III of subchapter O of chapter 1 of subtitle A is amended by inserting after section 1043 the following new section:
1044.
De minimis network fee exception
(a)
In general
No gain or loss shall be recognized on the disposition of a digital asset in payment of a de minimis network fee.
(b)
De minimis network fee
For purposes of this section—
(1)
In general
The term  de minimis network fee  means an amount paid or incurred in a digital asset transaction to validate another digital asset transaction if the aggregate amount so paid or incurred with respect to the validation of such other digital asset transaction does not exceed $10.
(2)
Network fee
The term  network fee  means any amount which would be a de minimis network fee if paragraph (1) were applied without regard to the dollar limitation specified therein.
(c)
Disposition of digital asset used To pay network fee
For purposes of this section—
(1)
a disposition of a digital asset shall not fail to be treated as a payment merely because such asset is not received by another person, and
(2)
any payment of a network fee using a digital asset shall be treated as a disposition of such asset in exchange for consideration equal to the fair market value of such digital asset.
(d)
Treatment of unrecognized gain
The amount of any network fee which would otherwise be taken into account in determining the amount of gain or loss on the disposition of any asset, in determining the amount of any deduction, or in determining the basis of any asset acquired, shall be reduced by the amount of any gain not recognized by reason of subsection (a) with respect to the disposition of the digital asset used to pay such network fee.
(e)
Exclusions
(1)
Trade or business
(A)
In general
Subsection (a) shall not apply to the disposition of a digital asset by—
(i)
a trader, broker, or dealer in digital assets,
(ii)
a person in the trade or business of batching or facilitating the validation of digital asset transactions on behalf of others,
(iii)
to the extent provided by the Secretary, any person in a trade or business which is substantially similar to a trade or business described in clause (i) or (ii), or
(iv)
any person that engaged in more than 5,000 digital asset transactions during the preceding taxable year.
(B)
Administrative convenience exception
(i)
In general
Subparagraph (A) shall not apply to any taxpayer that demonstrates to the Secretary that such taxpayer is of a type with respect to which not applying subparagraph (A) will not result in a substantial Federal revenue loss.
(ii)
Guidance
The Secretary shall issue guidance that—
(I)
identifies different types of taxpayers with respect to which not applying subparagraph (A) will not result in substantial Federal revenue loss, and
(II)
specifies with respect to each such type of taxpayer the information that such taxpayer must provide to make the demonstration described in clause (i).
(iii)
Certain factors required to be taken into account
The guidance issued by the Secretary under clause (ii) shall—
(I)
for purposes of determining the classification of types of taxpayers, and whether any Federal revenue loss from not applying subparagraph (A) with respect to any such type of taxpayer would be substantial, take into account the method or methods used by such type of taxpayer for selecting the digital assets used to pay network fees and the average holding period of such digital assets by such type of taxpayer, and
(II)
determine Federal revenue loss by reducing such loss by a reasonable approximation of the additional administrative costs of the Department of the Treasury, and the additional compliance costs of such type of taxpayer (and any person who would be required to make additional information return reporting with respect to such type of taxpayer), which would be imposed if subparagraph (A) did not apply to such type of taxpayer.
(2)
Certain accounting methods
Subsection (a) shall not apply to any digital asset—
(A)
to which section 475, 1051(a), or 1256(a), or
(B)
except as otherwise provided by the Secretary, to which a mark-to-market method applies under any other provision of this subtitle.
(f)
Regulations
The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or guidance to prevent the abuse of this section through—
(1)
transaction structuring for the purpose of qualifying for the exclusion provided in subsection (a), and
(2)
the receipt of any value other than the validation of a digital asset transaction in exchange for a network fee.
 .
(b)
Clerical amendment
The table of sections for part III of subchapter O of chapter 1 of subtitle A is amended by inserting after the item relating to section 1043 the following new item:
Sec. 1044. De minimis network fee exception.
  .
(c)
Effective date
The amendments made by this section shall apply to the disposition of assets after December 31, 2027.
3.
Simplified accounting for gain and loss on widely traded digital assets
(a)
In general
Part IV of subchapter O of chapter 1 of subtitle A is amended by inserting before section 1052 the following new section:
1051.
Election to apply simplified accounting for gain and loss on widely traded digital assets
(a)
In general
In the case of any designated type of digital asset with respect to any taxpayer for any taxable year—
(1)
such taxpayer shall recognize gain on such designated type of digital asset for such taxable year equal to the excess (if any) of—
(A)
the sum of—
(i)
the aggregate amount realized by the taxpayer on sales or exchanges (including nonrecognition transactions) of widely traded digital assets of such designated type during such taxable year,
(ii)
in the case of dispositions (including nonrecognition transactions), other than sales or exchange described in clause (i), of widely traded digital assets of such designated type, the fair market value of such widely traded digital assets (determined as of the time of such dispositions), and
(iii)
the fair market value of widely traded digital assets of such designated type held by such taxpayer as of the close of the taxable year, over
(B)
the sum of—
(i)
the fair market value of consideration provided by the taxpayer for the acquisition of widely traded digital assets of such designated type during the taxable year,
(ii)
in the case of any disposition described in subparagraph (A)(ii), any amounts which would have reduced the amount realized by the taxpayer on such disposition if such disposition had been a sale or exchange,
(iii)
in the case of the acquisition of widely traded digital assets of such designated type during the taxable year the basis of which in the hands of the taxpayer are determined by reference to the basis of such assets in the hands of the transferor, the basis of such assets in the hands of the taxpayer immediately after such acquisition, and
(iv)
the fair market value of widely traded digital assets of such designated type held by such taxpayer as of the close of the preceding taxable year,
(2)
such taxpayer shall recognize loss on such designated type of digital asset for such taxable year equal to the excess (if any) of—
(A)
the amount described in paragraph (1)(B), over
(B)
the amount described in paragraph (1)(A), and
(3)
except as provided in paragraph (1) and (2), such taxpayer shall not recognize any gain or loss on the disposition of widely traded digital assets of such designated type.
(b)
Designated type of digital asset
For purposes of this section—
(1)
In general
The term  designated type of digital asset  means, with respect to any taxpayer for any taxable year, any type of widely traded digital asset with respect to which such taxpayer elects the application of this section for such taxable year.
(2)
Type of widely traded digital asset
Widely traded digital assets shall be treated as being of the same type if, and only if—
(A)
such assets are fungible, or
(B)
such assets are determined under rules provided by the Secretary to have values that are directly linked or highly correlated.
(c)
Gain or loss treated as short-Term
Any gain or loss determined under subsection (a) shall be treated as short-term capital gain or short-term capital loss, respectively.
(d)
Treatment of lending transactions
(1)
Certain lending agreements
In the case of any transfer of widely traded digital assets to which section 1058(a) applies, such assets shall be treated for purposes of this section as continuing to be held by the transferor.
(2)
Other lending transactions
In the case of any loan of widely traded digital assets which is not described in paragraph (1), except as otherwise provided by the Secretary, such assets shall be treated for purposes of this section as continuing to be held by the lender.
(e)
Election
(1)
Application of election
An election under this section with respect to any designated type of digital asset shall apply to the first taxable year which begins after the date on which the taxpayer makes such election and to each taxable year thereafter unless revoked as provided in paragraph (3).
(2)
Partnerships and S corporations
In the case of any partnership or S corporation, the election under this section shall be made at the partnership or S corporation level.
(3)
Revocation
(A)
In general
A taxpayer may revoke an election under this section with respect to a taxable year which—
(i)
has not begun as of the date on which such taxpayer requests such revocation, and
(ii)
is not one of the first 5 taxable years to which such election applies.
(B)
Deemed revocation
In the case of any designated type of digital asset which has ceased to be a widely traded digital asset, the election under this section with respect to such designated type shall be treated as revoked with respect to the first taxable year beginning after the date on which such designated type ceases to be a widely traded digital asset.
(C)
5-year waiting period
In the case of any revocation under this paragraph with respect to any designated type of digital asset, the taxpayer may not make an election under this section with respect to such designated type if such election would apply to any of the first 5 taxable years to which such revocation applies.
(D)
Special rule for traders making mark-to-market election
If a taxpayer has in effect one or more elections under this section with respect to designated types of digital assets and such taxpayer makes the election under section 475(f)(3) with respect to any taxable year, the taxpayer shall (notwithstanding subparagraph (A)) be treated as revoking all such elections under this section beginning with such taxable year.
(f)
Transition rules related to election, revocation, and certain transfers
(1)
Transition rule for election
In the case of an election under this section, with respect to any designated type of digital asset, any widely traded digital assets of such designated type held by the taxpayer shall be treated as sold for fair market value on the last day of the taxable year preceding the first taxable year to which such election applies.
(2)
Transition rule for revocation
In the case of a revocation of an election under this section, proper adjustment shall be made in the amount of any gain or loss subsequently realized for gain or loss taken into account under subsection (a).
(3)
Transition rule for certain transfers
In the case of any transfer of a widely traded digital asset which is a designated type of digital asset with respect to the transferor for the taxable year in which the transfer occurs, if the basis of such asset in the hands of the transferee is determined by reference to the basis of such asset in the hands of the transferor, the basis of such asset in the hands of the transferor (solely for purposes of determining the basis of such asset in the hands of the transferee) shall be treated as being equal to the fair market value of such asset at the time of such transfer.
(g)
Coordination with certain other provisions
(1)
Determined without regard to wash and constructive sale rules
Sections 1091 and 1259 shall not apply to any transaction with respect to which gain or loss is not recognized by reason of subsection (a)(3).
(2)
Coordination with related party transaction rules
Section 267 shall not apply with respect to a sale or exchange of property if the transferor has an election in effect under this section for the taxable year with respect to such property.
(3)
Nonrecognition provisions to not apply
In the case of any transfer of a widely traded digital asset which is not a designated type of digital asset with respect to the transferor for the taxable year of the transferor in which the transfer occurs but which is a designated type of digital asset with respect to the transferee for the taxable year of the transferee in which the transfer occurs, if the transferor and transferee are described in section 267(b) (applied without regard to section 267(c)(3)) or section 707(b)(1), gain or loss shall be recognized on such transfer notwithstanding any other provision of this title.
(h)
Clarification that certain transfers are treated as dispositions
The following shall not fail to be treated as a disposition for purposes of this section:
(1)
The distribution of any digital asset from a trust to a beneficiary.
(2)
The transfer of any digital asset from a decedent (whether or not incident to the decedent’s death).
(i)
Regulatory authority
The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or guidance relating to—
(1)
the form and manner of making an election or revocation under this section,
(2)
adjustments necessary by reason of such election or revocation,
(3)
adjustments to reporting requirements relating to widely traded digital assets with respect to which an election is in effect under this section,
(4)
the treatment of a derivative of a designated type of digital asset, and
(5)
preventing abuse of this section.
 .
(b)
Clerical amendment
The table of sections for part III of subchapter O of chapter 1 of subtitle A is amended by inserting before the item relating to section 1052 the following new item:
Sec. 1051. Election to apply simplified accounting for gain and loss on widely traded digital assets.
  .
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2027.
4.
Treatment of U.S. dollar stablecoin transactions
(a)
In general
Part IV of subchapter O of chapter 1 of subtitle A is amended by redesignating section 1063 as section 1064 and by inserting after section 1062 the following new section:
1063.
Certain U.S. dollar stablecoin transactions
(a)
Treatment of acquisitions of U.S. dollar stablecoins
(1)
Determination of basis
The basis of any qualified U.S. dollar stablecoin acquired by a taxpayer in any sale or exchange shall be the redemption value of such stablecoin. The preceding sentence shall not apply if it is unreasonable under the facts and circumstances to conclude that the value of the consideration provided for such stablecoin in such sale or exchange is not less than 99.5 percent of such redemption value.
(2)
Treatment of consideration provided in exchange
For purposes of this title, in the case of any consideration other than money provided in exchange for a qualified U.S. dollar stablecoin, the income, gain, or loss resulting from the provision of such consideration shall be determined by treating the value of such qualified U.S. dollar stablecoin as being equal to the redemption value of such stablecoin. The preceding sentence shall not apply if it is unreasonable under the facts and circumstances to conclude that the value of such stablecoin is not less than 99.5 percent, and not more than 100.5 percent, of such redemption value.
(b)
Treatment of sale or exchange of qualified U.S. dollar stablecoins
(1)
Determination of gain or loss
If the taxpayer’s basis in any qualified U.S. dollar stablecoin was determined under subsection (a)(1), gain or loss on such taxpayer’s sale or exchange of such stablecoin shall be determined as though such stablecoin were sold or exchanged for the redemption value of such stablecoin. The preceding sentence shall not apply if it is unreasonable under the facts and circumstances to conclude that the value of the consideration received for such stablecoin in such sale or exchange is not more than 100.5 percent of such redemption value.
(2)
Treatment of consideration received in exchange
For purposes of this title, in the case of any consideration other than money received in exchange for a qualified U.S. dollar stablecoin, the cost of (and amount paid or incurred for) such consideration shall be determined by treating the value of such qualified U.S. dollar stablecoin as being equal to the redemption value of such stablecoin. The preceding sentence shall not apply if it is unreasonable under the facts and circumstances to conclude that the value of such stablecoin is not less than 99.5 percent, and not more than 100.5 percent, of such redemption value.
(c)
Exceptions
(1)
In general
Subsections (a) and (b) shall not apply with respect to any taxpayer for any taxable year if such taxpayer is—
(A)
a trader, broker, or dealer in qualified U.S. dollar stablecoins,
(B)
to the extent provided by the Secretary, any person in a trade or business which is substantially similar to a trade or business described in subparagraph (A), or
(C)
any other person who in the preceding taxable year engaged in more than 5,000 transactions to which subsection (a) or (b) applied, determined without regard to—
(i)
any such transaction which is predominantly with respect to a trade or business (other than a trade or business described in subparagraph (A) or (B)), including the acceptance of qualified U.S. dollar stablecoins at redemption value as a payment for goods or services in such trade or business and the use of qualified U.S. dollar stablecoins at redemption value to acquire goods and services for use in such trade or business, and
(ii)
any such transaction which is a sale (for money) of a qualified U.S. dollar stablecoin at or below redemption value.
(2)
Functional currency other than the dollar
Subsections (a) and (b) shall not apply to any taxpayer or qualified business unit (as defined in section 989(a)) that uses a functional currency other than the dollar.
(3)
Related parties
In the case of any sale or exchange between persons described in section 267(b) (applied without regard to section 267(c)(3)) or section 707(b)(1)—
(A)
subsections (a)(1), (a)(2), and (b)(2) shall be applied by substituting  100 percent  for  99.5 percent , and
(B)
subsections (a)(2), (b)(1), and (b)(2) shall be applied by substituting  100 percent  for  100.5 percent .
(d)
Redemption value
For purposes of this section, the term  redemption value  means, with respect to a qualified U.S. dollar stablecoin, the dollar amount for which the issuer is obligated to convert, redeem, or repurchase such stablecoin.
(e)
Regulations
The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including regulations or other guidance—
(1)
describing the factors considered, and documentation or substantiation required, with respect to the facts and circumstances tests described in subsections (a)(1), (a)(2), (b)(1), and (b)(2),
(2)
providing for the application of subsection (c)(1) with respect to a portion of a taxable year if the taxpayer only regularly purchases, exchanges, or sells qualified U.S. dollar stablecoins for profit for a portion of such taxable year, and
(3)
to prevent abuse of this section.
 .
(b)
Clerical amendment
The table of sections for part IV of subchapter O of chapter 1 of subtitle A is amended by redesignating the item relating to section 1063 as an item relating to section 1064 and by inserting after the item relating to section 1062 the following new item:
Sec. 1063. Certain U.S. dollar stablecoin transactions.
  .
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2026.
5.
Broker requirements
(a)
In general
(1)
Exception for qualified U.S. dollar stablecoins acquired at redemption value
 Section 6045(g)(3)(D)  is amended to read as follows:
(D)
Specified digital asset
The term  specified digital asset  means any digital asset other than a qualified U.S. dollar stablecoin the customer’s basis in which at the time of acquisition is at least 99.5 percent of such stablecoin’s redemption value (as defined in section 1063(e)).
 .
(2)
Conforming amendments
(A)
 Section 6045(c)(1)(D)  is amended by striking  digital assets  and inserting  specified digital assets .
(B)
Subparagraph (B)(iv) and subparagraph (C)(iii) of section 6045(g)(3) are each amended by striking  digital asset  and inserting  specified digital asset .
(C)
 Section 6050I(d)(3)  is amended by striking  (as defined in section 6045(g)(3)(D)) .
(b)
Special rules for digital assets used To pay de minimis validation fee
 Section 6045(g)  is amended by adding at the end the following new paragraph:
(7)
Special rules for digital assets used to pay de minimis validation
  fee
(A)
In general
Except as otherwise provided by the Secretary, in the case of the disposition of a digital asset with respect to which no gain or loss is recognized by reason of section 1044(a)—
(i)
except as provided in clause (ii), subsection (a) shall not apply to such disposition, and
(ii)
the broker shall include in a return under subsection (a) such aggregate information relating to such dispositions of the taxpayer as the Secretary determines necessary or appropriate, including for purposes of verifying the taxpayer’s basis in digital assets held by the taxpayer.
(B)
Application of de minimis exception
If the broker has been notified by the taxpayer or the Secretary that the exception described in section 1044(e)(1)(B) applies to such taxpayer, the broker may treat such exception as continuing to apply with respect to such taxpayer for any calendar year (hereafter in this subparagraph referred to as the  current calendar year ) unless—
(i)
such taxpayer had more than 5,000 digital asset transactions with such broker during any of the 5 preceding calendar years and the taxpayer has not notified the broker that such exception applies to such taxpayer for the current calendar year,
(ii)
such taxpayer or the Secretary notifies such broker that such exception does not apply to such taxpayer, or
(iii)
such broker otherwise knows, or has reason to know, that such exception does not apply to such taxpayer.
  .
(c)
Special rules for simplified accounting for widely traded digital assets
Section 6045(g), as amended by subsection (b), is amended by adding at the end the following new paragraph:
(8)
Special rules for simplified accounting for widely traded digital assets
(A)
In general
Except as otherwise provided by the Secretary, in the case of widely traded digital assets with respect to which an election under section 1051 applies—
(i)
except as provided in clause (ii), subsection (a) shall not apply to dispositions of such assets, and
(ii)
the broker shall include in a return under subsection (a) such information with respect to each desginated type of such assets (within the meaning of section 1051) as the Secretary may provide, including—
(I)
aggregate reporting with respect to sales, exchanges, dispositions, and acquistions of assets of such designated type (including net gain or loss thereon),
(II)
the fair market value of assets of such designated type held by the taxpayer as of the beginning and end of the calendar year, and
(III)
such other information as the Secretary may require with respect to assets of such designated type for purposes of the administration of section 1051.
(B)
Determination of election based on broker notification
For purposes of subparagraph (A), the broker shall take into account any election under section 1051 (and any revocation of such election) if (and only if) the taxpayer or the Secretary notifies such broker of such election (or revocation) or such broker otherwise knows, or has reason to know, of such election (or revocation).
 .
(d)
Effective date
The amendments made by this section shall apply to returns required to be filed, and statements required to be furnished, after December 31, 2027.
6.
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)
Traded digital asset
The term  traded digital asset  means, except as otherwise provided by the Secretary to prevent abuse, any digital asset if—
(A)
such asset is fungible,
(B)
quotations of such asset are readily available on an exchange (or, in the case of an exchange that does not provide quotations, such quotations are readily ascertainable), and
(C)
such asset is either—
(i)
not a tokenized digital asset, or
(ii)
a wrapped digital asset with respect to which the reference digital asset is a traded digital asset.
(3)
Widely traded digital asset
(A)
In general
The term  widely traded digital asset  means, with respect to any taxpayer for any taxable year and except as otherwise provided by the Secretary to prevent abuse, any traded digital asset if—
(i)
quotations for such asset were readily available on an exchange for the entire calendar year which ends in or with the taxable year preceding such taxable year,
(ii)
the market capitalization of such asset exceeded $500,000,000 at substantially all times during such calendar year, and
(iii)
not more than 10 percent of the units of such asset were owned, directly or indirectly, by the taxpayer or any person described with respect to the taxpayer under section 267(b) (applied without regard to section 267(c)(3)) or section 707(b)(1) at any time during such taxable year or such preceding taxable year.
(B)
Special rule for wrapped digital assets
In the case of any wrapped digital asset, except as otherwise provided by the Secretary to prevent abuse, such asset shall be treated as a widely traded digital asset if, and only if, the reference digital asset with respect to such wrapped digital asset is a widely traded digital asset.
(C)
Authority to ensure reliable price discovery
For purposes of subparagraphs (A) and (B), the term  prevent abuse  includes the exclusion of assets that lack reliable price discovery or that the Secretary determines are at risk of price manipulation.
(D)
Authority to adjust requirements
The Secretary may, by regulation, provide requirements that apply in lieu of one or more of the requirements of clauses (i) through (iii) of subparagraph (A) if the Secretary determines that due to changes in market conditions (including by reason of the enactment of Federal digital asset market structure legislation) that such alternative requirements would more effectively or efficiently identify traded digital assets for which there is consistent and reliable price discovery.
(E)
Inflation adjustment
In the case of any calendar year after 2027, the $500,000,000 amount in subparagraph (A)(ii) shall be increased by an amount equal to—
(i)
such dollar amount, multiplied by
(ii)
the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting  calendar year 2026  for  calendar year 2016  in subparagraph (A)(ii) thereof.
 Any increase determined under the preceding sentence which is not a multiple of $100,000 shall be rounded to the nearest multiple of $100,000.
(4)
Tokenized digital asset
The term  tokenized digital asset  means any digital asset (other than any qualified U.S. dollar stablecoin) if more than an insignificant portion of the value of such digital asset is related to anything other than the operation of the cryptographically secured distributed ledger on which such digital asset is recorded.
(5)
Wrapped digital asset
The term  wrapped digital asset  means, except as otherwise provided by the Secretary to prevent abuse, any digital asset if such asset—
(A)
is redeemable on demand, on a one-for-one basis, for another digital asset, and
(B)
is recorded on a cryptographically secured distributed ledger other than the cryptographically secured distributed ledger on which the digital asset referred to in subparagraph (A) is recorded.
(6)
Reference digital asset
(A)
In general
The term  reference digital asset  means, with respect to any wrapped digital asset, the digital asset referred to in paragraph (5)(A).
(B)
Special rule for rewrappings
If, but for this subparagraph, the reference digital asset with respect to any wrapped digital asset would be a wrapped digital asset (hereafter referred to in this paragraph as the lower-tier wrapped digital asset)—
(i)
subparagraph (A) shall be applied with respect to such lower-tier wrapped digital asset, and
(ii)
the reference digital asset with respect to such lower-tier wrapped digital asset shall be treated as the reference digital asset of such wrapped digital asset.
(C)
Multiple wrappings
If, after the application of subparagraph (B), the reference digital asset with respect to the lower-tier wrapped digital asset is a wrapped digital asset, such subparagraph shall be reapplied by treating such lower-tier wrapped digital asset as the wrapped digital asset.
(7)
Stablecoin
(A)
Qualified U.S. dollar stablecoin
The term  qualified U.S. dollar stablecoin  means any U.S. dollar stablecoin which is issued by—
(i)
a permitted payment stablecoin issuer (as defined in section 2(23) of the GENIUS Act, as in effect on the date of the enactment of this paragraph), or
(ii)
a foreign payment stablecoin issuer (as defined in section 2(12) of the GENIUS Act, as so in effect) which is permitted under such Act (as so in effect) to offer, sell, or otherwise make available such U.S. dollar stablecoin in the United States.
(B)
U.S. dollar stablecoin
The term  U.S. dollar stablecoin  means a payment stablecoin as defined in section 2(22) of the GENIUS Act (as in effect on the date of the enactment of this paragraph) applied by substituting  dollars  for  monetary value  each place it appears in such section.
(C)
Publication of list
The Secretary shall, to the extent feasible, regularly publish a list of qualified U.S. dollar stablecoins.
(D)
Limited authority to treat stablecoins as money
The Secretary may issue such regulations or other guidance as may be necessary or appropriate to (except as otherwise expressly provided in this title)—
(i)
treat qualified U.S. dollar stablecoins as dollars, and
(ii)
treat other stablecoins as currency if such treatment would increase Federal revenues.
(8)
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).
(9)
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.
 .