PAR Act
- Bill Number
- H.R. 9176
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-08: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-10T16:32:33Z
AI-Generated Summary
Purpose The legislation, known as the Providing Analogous Rules for Digital Assets Act (PAR Act), amends the Internal Revenue Code of 1986 to extend existing tax rules for securities and commodities to certain digital assets. It aims to provide clarity on the tax treatment of digital asset lending, trading, and mark-to-market accounting.
Key Provisions
- Section 2 (Transfers of Traded Digital Assets Pursuant to a Lending Agreement): Extends IRC section 1058 to cover "specified assets," which include both securities and traded digital assets. This allows tax-free transfers of digital assets under lending agreements if the borrower returns identical assets and equivalent payments or obligations are met.
- Section 3 (Dealers and Traders of Widely Traded Digital Assets): Adds new rules under IRC section 475 allowing dealers and traders in "widely traded digital assets" to elect mark-to-market accounting. This applies to assets, notional contracts, derivatives, and certain hedges. Adjustments from the election are spread over four years.
- Section 4 (Digital Asset Trading Safe Harbor): Amends IRC section 864(b)(2) to create a safe harbor so that trading in traded digital assets by nonresident aliens or foreign corporations through U.S. agents does not constitute a U.S. trade or business (with an exception for dealers).
- Section 5 (Definitions): Adds definitions in IRC section 7701(p) for terms including digital asset, traded digital asset, widely traded digital asset (requiring fungibility, exchange quotations, $500 million market cap, and ownership limits), tokenized digital asset, wrapped digital asset, reference digital asset, and qualified U.S. dollar stablecoin.
- Section 6 (Rules of Construction): States that the Act creates no inference about whether digital assets qualify as securities, commodities, or other financial instruments under other laws, and no inference for periods before the Act's effective dates.
Significant Changes to Existing Law
- Broadens securities lending provisions (section 1058) to include digital assets.
- Extends mark-to-market rules (section 475) to digital asset dealers and traders.
- Introduces a trading safe harbor (section 864) for digital assets, modeled on rules for securities and commodities.
- Establishes new statutory definitions for digital assets and related terms, with authority for the Secretary to issue regulations.
Potential Impacts
- Government Agencies: Requires the IRS and Treasury to administer new tax rules, publish lists of qualified stablecoins, and potentially issue guidance on price discovery and abuse prevention.
- Citizens: Provides tax clarity for U.S. individuals and businesses engaged in digital asset lending, trading, or holding, potentially reducing disputes over accounting methods.
- International Relations: Offers a safe harbor that may encourage foreign participation in U.S. digital asset markets without triggering U.S. tax obligations for trading activities.
Main Stakeholders Affected
- Digital asset dealers, traders, and investors.
- Taxpayers holding or transferring traded or widely traded digital assets.
- Foreign persons trading digital assets through U.S. agents.
- The Internal Revenue Service and Department of the Treasury.
Notable Legal, Constitutional, or Political Implications The Act explicitly avoids creating inferences about the classification of digital assets under securities, commodities, or other laws, preserving flexibility for future legislation. It includes transitional rules for elections and adjustments, with effective dates applying to transfers or taxable years after enactment (or after December 31, 2025, for the safe harbor). No constitutional issues are addressed in the bill text.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-06-08: Referred to the House Committee on Ways and Means.
- 2026-06-08: Introduced in House
- 2026-06-08: Introduced in House
Bill Versions
- Providing Analogous Rules for Digital Assets Act — issued 2026-06-08 — PDF (18 pages)