hold on there's just too much going on in Congress lmao...
Changes tax rules for derivatives and related investments.
Senator Ron Wyden (D-OR) introduced it.
In committee, no Senate vote yet.
This bill, introduced by Senator Ron Wyden (Democrat, Oregon), aims to update how the tax code treats derivatives, such as options, futures, and swaps, along with their underlying assets. It proposes new rules for recognizing gains and losses annually and determining their character. Currently, the bill has been introduced in the Senate and referred to the Finance Committee, where it awaits review before any potential votes.
Introduced Apr 16, 2026
This bill was introduced in the Senate on April 16, 2026, and has been assigned to the Senate Finance Committee for review. For it to become law, the committee must approve it, then the full Senate would need to pass it, followed by passage in the House of Representatives, and finally, presidential signature. No votes have occurred yet.
This bill would fundamentally alter how many derivatives, like options, futures, and swaps, are taxed. For individuals and businesses holding these, gains and losses would generally be recognized annually at fair market value and typically treated as ordinary income or loss, rather than capital gains or losses recognized only upon sale. The bill introduces new definitions for "derivatives" and "investment hedging units" to clarify which contracts and underlying assets are subject to these rules. It also allows regulated investment companies (RICs) to utilize net operating loss deductions, which they currently cannot. Additionally, real estate investment trusts (REITs) would gain new election options to manage the tax treatment of debt hedging instruments. The bill would repeal numerous existing tax code sections related to financial instruments, streamlining rules into this new framework.
Supporters Say
Supporters would argue this bill modernizes outdated tax rules for complex financial instruments, creating a more consistent and fair system by treating gains and losses from derivatives as ordinary income recognized annually, similar to other business income.
Critics Say
Critics might contend that the changes could create significant compliance burdens for investors and businesses, potentially increase the tax liability for certain long-term derivative strategies by reclassifying capital gains as ordinary income, and disrupt established financial planning.