S. 2621 · 117th Congress

Modernization of Derivatives Tax Act of 2021

Introduced on Aug 5, 2021 by Ron Wyden (D-OR). Latest action (Aug 5, 2021): Read twice and referred to the Committee on Finance.

Stage
Introduced
Introduced
Aug 5, 2021
Cosponsors
0
Policy area
Taxation
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Progress

The furthest stage the measure reached. Simple and concurrent resolutions do not go to the President.

  1. Introduced
  2. 2Reported by committee
  3. 3Passed one chamber
  4. 4Passed both chambers
  5. 5Sent to the President
  6. 6Became law

Official title

A bill to amend the Internal Revenue Code of 1986 to modernize the tax treatment of derivatives and their underlying investments, and for other purposes.

Subjects

  • Capital gains tax
  • Commodities markets
  • Corporate finance and management
  • Income tax rates
  • Securities

Summary

By the Congressional Research Service (Introduced in Senate, Aug 5, 2021). Public domain.

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.

Sponsor and cosponsors

Cosponsors by party as of the day they signed on. Original cosponsors signed on the day of introduction.

Ron WydenD-ORSponsor

No cosponsors.

Roll calls

Recorded votes on the measure. Most measures move by voice vote or unanimous consent, which record no individual positions.

No recorded roll call on this measure: it moved by voice vote or unanimous consent, or has not reached the floor.

History

Every action as published, oldest first. Roll calls link to how each member voted.

  1. Aug 5, 2021Introduced in Senate
  2. Aug 5, 2021 · SenateRead twice and referred to the Committee on Finance.

Committees

Committees and subcommittees the measure was referred to.

Agencies in its committees' jurisdiction

Analisa's mapping of committee jurisdiction to federal agencies; the bill may touch others, or none of these.

Who lobbied on it

Organizations whose lobbying reports (LD-2) name this measure. Spending is what they reported for those quarters on all issues, not on this measure alone.

  1. AMERICAN COUNCIL OF LIFE INSURERS8 reports
    $8M reported (all issues)
  2. THE OPTIONS CLEARING CORPORATION7 reports
    $1.3M reported (all issues)
  3. THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY6 reports
    $5.1M reported (all issues)Federal contractor: NORTHWESTERN MUTUAL LIFE INSURANCE CO, THEAI match · 100%
  4. FUTURES INDUSTRY ASSOCIATION1 report
    $200K reported (all issues)

Reports filed in 2023, 2024, 2025.

Sources and method

Every figure on this page traces to these records.

  • Bill status: bills and resolutions, sponsors, actions, subjects and CRS summaries (U.S. Government Publishing Office (GovInfo), from Congress.gov (Library of Congress))GovInfo Bill Status bulk data (Congress.gov; summaries by the Congressional Research Service) · data current to Oct 10, 2026 · loaded Oct 10, 2026 · license: Public domain (U.S. Government work, 17 U.S.C. § 105)
  • Members of Congress, their terms, committees and identifiers (The @unitedstates project (from the Biographical Directory of the U.S. Congress, the House and the Senate))unitedstates/congress-legislators: legislators, committees and current committee membership · data current to Oct 3, 2026 · loaded Oct 3, 2026 · license: CC0 1.0 (public domain dedication)
  • House roll-call votes (Office of the Clerk, U.S. House of Representatives)Office of the Clerk, U.S. House of Representatives, roll-call vote records · data current to Oct 3, 2026 · loaded Oct 3, 2026 · license: Public domain (U.S. Government work, 17 U.S.C. § 105)
  • Senate roll-call votes and DW-NOMINATE scores (Voteview (UCLA Department of Political Science))Lewis, Jeffrey B., Keith Poole, Howard Rosenthal, Adam Boche, Aaron Rudkin, and Luke Sonnet (2026). Voteview: Congressional Roll-Call Votes Database. https://voteview.com/ · data current to Oct 3, 2026 · loaded Oct 3, 2026 · license: Free to use with the required citation
  • Lobbying disclosures (LD-1 registrations, LD-2 quarterly reports, LD-203 contribution reports) (Clerk of the U.S. House of Representatives)Clerk of the House, Lobbying Disclosure Act filings (organizations only; lobbyists' names are not loaded) · data current to Oct 10, 2026 · loaded Oct 10, 2026 · license: Public domain (U.S. Government work, 17 U.S.C. § 105)
  • Positions are shown only where a roll call recorded them; voice votes and unanimous consent record none.
  • Money and votes are shown side by side; neither explains the other.