Bills · S 2207
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2207Taxation
A bill to amend the Internal Revenue Code of 1986 to reform the treatment of digital assets.
INTRO JUN 30· LAST ACTION JUN 30
READING
18MIN
COSPONSORS
3
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because current tax rules for digital assets are often unclear and burdensome, especially for everyday transactions. If you use a digital asset that has increased in value by even a few cents to buy a coffee, under current law, that tiny gain is technically a taxable event you're supposed to report. This discourages the use of digital assets for small purchases and creates significant complexity for individuals and the IRS.
If this bill becomes law, it would remove that reporting headache for small transactions, making it much simpler to use digital assets like currency. It also provides much-needed clarity for digital asset lending, which could help grow this part of the digital economy by making tax implications more predictable for investors and institutions. Without this bill, the tax reporting burden for even the smallest digital asset transactions will continue, hindering their adoption for routine payments and leaving uncertainty in areas like digital asset lending.
KEY PROVISIONS
4AI-extractedPROVISION 01
Defines 'digital asset' for tax purposes, including digital representations of value on distributed ledgers, but excluding those that primarily represent traditional financial assets.
This provision provides foundational clarity on what digital assets are subject to the bill's tax rules, which is crucial for consistent application.
PROVISION 02
Exempts small gains or losses (up to $300 per transaction, $5,000 total annually) from the sale or exchange of digital assets used for personal purchases of goods or services from capital gains tax.
This significant change simplifies tax compliance for everyday digital asset users, removing the burden of tracking minor tax events for small transactions.
PROVISION 03
Extends the tax treatment for securities lending agreements (Section 1058) to include 'actively traded digital assets,' specifying rules for income and basis adjustments.
This provision modernizes tax law to cover an important aspect of the digital asset economy, providing regulatory certainty for lending activities.
PROVISION 04
The de minimis gain or loss exclusion for digital assets is set to terminate for taxable years beginning after December 31, 2035.
This sunset clause means the simplified tax treatment for small digital asset transactions is temporary, creating future uncertainty for users and the industry.
SPONSORSHIP
1 + 3
R· Wyoming
YRS IN OFFICE
17
BILLS LED
47
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 3 IND 0
ACTION TIMELINE
2 EVENTSJUN 30
Introduced in Senate
JUN 30
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 2207
Congress119th
StatusIn Committee
IntroducedJun 30, 2025
Last actionJun 30, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED JUN 30, 2025
Senate BillS 2207Taxation
A bill to amend the Internal Revenue Code of 1986 to reform the treatment of digital assets.
INTRODUCED JUN 30, 2025· LAST ACTION JUN 30, 2025
PASSAGE CHANCES
—%
READING
18 min
COSPONSORS
3
COMPLEXITY
Moderate
