Skip to main content
S 2621 117th Congress Senate Taxation Capital gains tax Commodities markets Corporate finance and management Income tax rates Securities

Modernization of Derivatives Tax Act of 2021

Introduced: August 5, 2021 Introduced by: Wyden, Ron Democratic · Oregon See on congress.gov
Sign in to write a letter Sign in to watch
This bill died when the 117th Congress ended
It never became law before the 117th Congress (2021–2022) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Aug 5, 2021
Read twice and referred to the Committee on Finance.
Aug 5, 2021
Introduced in Senate
 Ask about this bill AI · grounded in the bill text

Have a question about what this bill does? Ask in plain English; the answer is drawn from the bill's actual text and official record, and it'll tell you when something isn't in the text rather than guess.

AI answers can be imperfect; always confirm against the full bill text.

 Plain-English summary Congressional Research Service

Modernization of Derivatives Tax Act of 2021

This bill modifies the tax treatment of derivatives. A derivative is any contract (including any option, forward contract, futures contract, short position, swap, or similar contract) the value of which, or any payment or other transfer with respect to which, is (directly or indirectly) determined by reference to another specified item.

The bill modifies the tax treatment of derivatives to (1) require mark to market treatment (treating the contracts as if they had been terminated or transferred at fair market value at the end of the year) for derivatives not terminated or transferred during the year, (2) require gains and losses to be taxed at ordinary tax rates and sourced to the taxpayer's country of residence, and (3) revise the reporting requirements and tax rules that apply to taxpayers that use derivatives to hedge capital assets.

The bill includes several exceptions for

  • certain real property;
  • hedging transactions;
  • securities lending, sale-repurchase, and similar financing transactions;
  • options received in connection with the performance of services;
  • insurance contracts, annuities, and endowments;
  • derivatives with respect to stock of members of the same worldwide affiliated group; and
  • commodities used in the normal course or trade of business.
What's happening now August 5, 2021

Read twice and referred to the Committee on Finance.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Lobbying activity 4

Registered lobbyists who named this bill in their disclosure filings. Source: federal Lobbying Disclosure Act filings.

Cite this page click to expand
APA
U.S. Congress. (2026). S. 2621: Modernization of Derivatives Tax Act of 2021. 117th Congress. Open America. https://openamerica.io/bill/117-S-2621/
MLA
"S. 2621: Modernization of Derivatives Tax Act of 2021." 117th Congress, 2026, Open America, https://openamerica.io/bill/117-S-2621/.
Bluebook (legal)
S. 2621, 117th Cong. (2026), https://openamerica.io/bill/117-S-2621/.
Markdown link
[S. 2621: Modernization of Derivatives Tax Act of 2021](https://openamerica.io/bill/117-S-2621/)
Report a problem