II 

117TH CONGRESS 

2D SESSION S. 4608 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

de minimis gains from certain sales or exchanges of virtual currency, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 26, 2022 

Mr. TOOMEY 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 from certain sales 

or exchanges of virtual currency, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Virtual Currency Tax 

5 Fairness Act’’. 

6 SEC. 2. VIRTUAL CURRENCY. 

7 (a) IN GENERAL.—Part III of subchapter B of chap8 ter 1 of the Internal Revenue Code of 1986 is amended 

9 by inserting after section 139I the following new section: 


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•S 4608 IS

1 ‘‘SEC. 139J. DE MINIMIS GAIN FROM SALE OR EXCHANGE 

2 OF VIRTUAL CURRENCY. 

3 ‘‘(a) IN GENERAL.—Subject to subsection (b), gross 

4 income shall not include gain from the sale or exchange 

5 of virtual currency, unless the sale or exchange is for— 

6 ‘‘(1) cash or cash equivalents, 

7 ‘‘(2) any property used by the taxpayer in the 

8 active conduct of a trade or business, or 

9 ‘‘(3) any property held by the taxpayer for the 

10 production of income (as described in section 

11 212(2)). 

12 ‘‘(b) LIMITATION.— 

13 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

14 apply in the case of any sale or exchange for 

15 which— 

16 ‘‘(A) the total value of such sale or ex17 change exceeds $50, or 

18 ‘‘(B) the total gain which would otherwise 

19 be recognized with respect to such sale or ex20 change exceeds $50. 

21 ‘‘(2) AGGREGATION RULE.—For purposes of 

22 this subsection, all sales or exchanges which are part 

23 of the same transaction (or a series of related trans24 actions) shall be treated as one sale or exchange. 


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•S 4608 IS

1 ‘‘(c) VIRTUAL CURRENCY.—For purposes of this sec2 tion, the term ‘virtual currency’ means a digital represen3 tation of value which— 

4 ‘‘(1) functions as a unit of account, a store of 

5 value, or a medium of exchange, and 

6 ‘‘(2) is not a representation of the United 

7 States dollar or any foreign currency. 

8 ‘‘(d) INFLATION ADJUSTMENT.—In the case of any 

9 taxable year beginning in a calendar year after 2023, the 

10 dollar amount in subsection (b)(1) shall be increased by 

11 an amount equal to— 

12 ‘‘(1) such dollar amount, multiplied by 

13 ‘‘(2) the cost-of-living adjustment determined 

14 under section 1(f)(3) for the calendar year in which 

15 the taxable year begins, determined by substituting 

16 ‘calendar year 2022’ for ‘calendar year 2016’ in sub17 paragraph (A)(ii) thereof. 

18 Any increase determined under the preceding sentence 

19 shall be rounded to the nearest multiple of $10.’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections 

21 for part III of subchapter B of chapter 1 of the Internal 

22 Revenue Code of 1986 is amended by inserting after the 

23 item relating to section 139I the following new item: 

‘‘Sec. 139J. De minimis gain from sale or exchange of virtual currency.’’. 


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•S 4608 IS

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply with respect to transactions en3 tered into after December 31, 2022. 

Æ 


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