Spending eligible dollar stablecoins would not trigger taxes on gains

Eligible stablecoin payments would produce no taxable gains or deductible losses. This covers goods and services paid for with tokens on Treasury's latest list for this tax rule. Tokens must have been bought within 3% of $1. Stablecoin traders, brokers, and dealers are excluded. Treasury could exclude similar businesses. Buyers must use dollars for tax accounting and keep records that separate eligible payments from other transactions. The rules would apply to transactions entered into after December 31, 2026.

Equivalent stocks and digital versions would count as matching assets under wash-sale rules, which limit deductions for some trading losses. This concerns tokens representing all rights, obligations, or interests in a stock. Digital assets acquired before the bill becomes law would be exempt from these provisions. The provisions would apply to sales and other covered disposals after the bill becomes law.

Users seeking the fee-payment tax exception would have to combine token payments tied to the same economic transaction. The cap covers token payments for costs such as network fees, commissions, and transfer taxes. Related transactions split to avoid the cap would count together. Using the same account or wallet alone would not require combining transactions. This rule would apply to token payments made after December 31, 2026.

The choice to use tax accounting based on market values would continue into later tax years. This applies to digital-asset dealers and people trading these assets as a business who choose the method. Treasury's permission would be needed to stop, but not to make the initial choice. The rules would apply to tax years beginning after December 31, 2026.

Eligible digital-asset gifts would be exempt from appraisal requirements for charitable tax deductions. Assets generally need exchange quotes throughout the previous calendar year and a market value above $500 million for nearly all that year. The donor and related people must meet a 10% ownership limit throughout the donation year and the previous year. Treasury could require appraisals to prevent abuse. The exemption would apply to tax years beginning after December 31, 2026. The $500 million threshold would rise with inflation after 2027.