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Virtual Currency Tax Fairness Act
To amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains or losses from certain sales or exchanges of virtual currency, and for other purposes.
Summary
This bill amends the Internal Revenue Code to allow taxpayers to exclude small gains or losses from the sale or exchange of virtual currency from their taxable income. The exclusion applies to transactions involving virtual currency-to-virtual currency exchanges, but does not apply to exchanges for cash, cash equivalents, business property, or property held for income production. The exclusion is limited to transactions where both the total value and the total gain or loss do not exceed $200, with all related transactions treated as one for this purpose. Virtual currency is defined as a digital representation of value that functions as a unit of account, store of value, or medium of exchange but is not a representation of U.S. or foreign currency. The $200 threshold amounts will be adjusted annually for inflation beginning in 2027, and the provision applies to transactions entered into after December 31, 2026.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
- Sen. Budd, Ted [R-NC] (R-NC)
Actions (2)
- Mar 24, 2026 Read twice and referred to the Committee on Finance. · senate
- Mar 24, 2026 Introduced in Senate
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Full text
IN THE SENATE OF THE UNITED STATES
March 24, 2026
Mr. Budd introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains or losses from certain sales or exchanges of virtual currency, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Virtual Currency Tax Fairness Act”.
SEC. 2. VIRTUAL CURRENCY.
(a) In General.—Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section:
“SEC. 139K. DE MINIMIS GAIN OR LOSS FROM SALE OR EXCHANGE OF VIRTUAL CURRENCY.
“(a) In General.—Subject to subsection (b), gross income shall not include gain or loss from the sale or exchange of virtual currency, unless the sale or exchange is for—
“(1) cash or cash equivalents,
“(2) any property used by the taxpayer in the active conduct of a trade or business, or
“(3) any property held by the taxpayer for the production of income (as described in section 212(2)).
“(b) Limitation.—
“(1) In general.—Subsection (a) shall not apply in the case of any sale or exchange for which—
“(A) the total value of such sale or exchange exceeds $200, or
“(B) the total gain or loss which would otherwise be recognized with respect to such sale or exchange exceeds $200.
“(2) Aggregation rule.—For purposes of this subsection, all sales or exchanges which are part of the same transaction (or a series of related transactions) shall be treated as one sale or exchange.
“(c) Virtual Currency.—For purposes of this section, the term ‘virtual currency’ means a digital representation of value which—
“(1) functions as a unit of account, a store of value, or a medium of exchange, and
“(2) is not a representation of the United States dollar or any foreign currency.
“(d) Inflation Adjustment.—In the case of any taxable year beginning in a calendar year after 2027, each dollar amount in subsection (b)(1) shall be increased by an amount equal to—
“(1) such dollar amount, multiplied by
“(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 2026’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $10.”.
(b) Clerical Amendment.—The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139L the following new item:
“Sec. 139K. De minimis gain or loss from sale or exchange of virtual currency.”.
(c) Effective Date.—The amendments made by this section shall apply with respect to transactions entered into after December 31, 2026. <all>
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