To amend the Internal Revenue Code of 1986 to clarify the tax treatment of digital asset rewards.

(a) In general. Part II of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 92. Digital asset rewards (a) In general If, pursuant to a blockchain consensus mechanism with respect to any digital asset, a person acquires (directly, or indirectly through a service provider) a reward of a digital asset— (1) no income or gain shall result at the time of such acquisition, and (2) on the disposition of such digital asset in any taxable year, the income or gain (if any) with respect to such asset shall be the income or gain, as the case may be, from the disposition for such taxable year. (b) Definitions For purposes of this section— (1) Digital asset The term digital asset shall have the meaning given such term under section 6045(g)(3)(D). (2) Blockchain consensus mechanism The term blockchain consensus mechanism means, with respect to any digital asset, a process by which a person commits resources in connection with validating the legitimacy of transactions and related entries in the cryptographically secured distributed ledger to which such digital asset relates. .

(b) Clerical amendment. The table of sections for part II of subchapter B of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 92. Digital asset rewards. .

(c) Effective date. The amendments made by this section shall apply to taxable years beginning after December 31, 2023.