Fair Taxation of Digital Assets in Puerto Rico Act of 2025

This bill changes how digital asset income is taxed for Puerto Rican residents under federal law. It specifies that income from digital assets - such as mining, staking, holding (including forks/airdrops), or selling/exchanging them - will no longer be treated as derived from Puerto Rico for tax purposes. This means such income would not be subject to Puerto Rico's tax jurisdiction under the Internal Revenue Code. The provision applies to taxable years beginning after the bill's enactment, directly affecting Puerto Rican residents earning income through these digital asset activities. The bill defines "digital asset" as a cryptographically secured digital representation of value recorded on a distributed ledger.