Virtual Currency Tax Fairness Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4171 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 4171 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. _______________________________________________________________________ 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