What does Preamble of Virtual Currency Tax Fairness Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment would exclude de minimis gains or losses from certain sales or exchanges of virtual currency from gross income.

What does SHORT TITLE. of Virtual Currency Tax Fairness Act do?

This bill is formally titled the Virtual Currency Tax Fairness Act.

What does VIRTUAL CURRENCY. of Virtual Currency Tax Fairness Act do?

This section amends the Internal Revenue Code of 1986 to establish a de minimis exception for gains or losses from the sale or exchange of virtual currency. Under the new section 139K, gross income generally will not include gains or losses from virtual currency transactions unless they involve cash, property used in a trade or business, or property held for the production of income. A limitation applies: the de minimis exception does not apply if the total value of a sale or exchange exceeds $200, or the total gain or loss exceeds $200. For purposes of this section, 'virtual currency' is defined as a digital representation of value functioning as a unit of account, store of value, or medium of exchange, and not representing the U.S. dollar or foreign currency. Dollar amounts in the limitation ($200) will be adjusted for inflation starting in taxable years beginning after 2027, using the cost-of-living adjustment. The amendments apply to transactions entered into after December 31, 2026.

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Virtual Currency Tax Fairness Act

Last updated: 3/24/2026 · Introduced: 3/24/2026

Author: Ted Budd (R-NC)

TL;DR (AI)

This bill establishes a de minimis exception in the Internal Revenue Code, excluding small gains or losses (up to $200, adjusted for inflation) from virtual currency sales or exchanges from being considered gross income.
The exception does not apply to virtual currency transactions involving cash, property used in a trade or business, or property held for the production of income.
The law applies to virtual currency transactions entered into after December 31, 2026, and defines virtual currency as a digital representation of value functioning as a unit of account, store of value, or medium of exchange.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

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