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119-hr-2982119th CongressWALLET

Fair Taxation of Digital Assets in Puerto Rico Act of 2025

Sponsored By: Representative Velázquez, Nydia M. [D-NY-7]

Introduced

Summary

Exempts certain digital-asset income of Puerto Rico residents from being treated as Puerto Rico-source income. The bill would add a new subsection to Internal Revenue Code section 865 saying income tied to receiving a digital asset from mining, staking, or holding (including forks and airdrops) or from selling, exchanging, or otherwise disposing of a digital asset is not Puerto Rico-source for individuals described in section 933. It treats a financial interest in a digital asset as a digital asset and defines "digital asset" as a digital representation of value recorded on a cryptographically‑secured distributed ledger. The rule would apply to taxable years beginning after enactment.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

New tax rules for Puerto Rico crypto users

If enacted, bona fide residents of Puerto Rico would see crypto income not counted as Puerto Rico source for federal tax rules. This would cover mining, staking, similar activities, holding (including forks and airdrops), and any sale or exchange. A financial interest would count as a digital asset. Because Puerto Rico source income is generally excluded from U.S. federal tax for these residents, this could raise their U.S. tax bills. The change would apply to tax years beginning after the date of enactment.

Sponsors & CoSponsors

Sponsor

Velázquez, Nydia M. [D-NY-7]

NY • D

Cosponsors

  • Rep. Ocasio-Cortez, Alexandria [D-NY-14]

    NY • D

    Sponsored 4/21/2025

  • Rep. Ramirez, Delia C. [D-IL-3]

    IL • D

    Sponsored 4/21/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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