II 

118TH CONGRESS 

2D SESSION S. 4808 

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 

JULY 25, 2024 

Mr. BUDD (for himself, Ms. SINEMA, Ms. LUMMIS, and Mrs. GILLIBRAND) 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. 

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’’. 


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•S 4808 IS

1 SEC. 2. VIRTUAL CURRENCY. 

2 (a) IN GENERAL.—Part III of subchapter B of chap3 ter 1 of the Internal Revenue Code of 1986 is amended 

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

5 ‘‘SEC. 139J. DE MINIMIS GAIN OR LOSS FROM SALE OR EX6 CHANGE OF VIRTUAL CURRENCY. 

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

8 income shall not include gain or loss from the sale or ex9 change of virtual currency, unless the sale or exchange is 

10 for— 

11 ‘‘(1) cash or cash equivalents, 

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

13 active conduct of a trade or business, or 

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

15 production of income (as described in section 

16 212(2)). 

17 ‘‘(b) LIMITATION.— 

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

19 apply in the case of any sale or exchange for 

20 which— 

21 ‘‘(A) the total value of such sale or ex22 change exceeds $200, or 

23 ‘‘(B) the total gain or loss which would 

24 otherwise be recognized with respect to such 

25 sale or exchange exceeds $200. 


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•S 4808 IS

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

2 this subsection, all sales or exchanges which are part 

3 of the same transaction (or a series of related trans4 actions) shall be treated as one sale or exchange. 

5 ‘‘(c) VIRTUAL CURRENCY.—For purposes of this sec6 tion, the term ‘virtual currency’ means a digital represen7 tation of value which— 

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

9 value, or a medium of exchange, and 

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

11 States dollar or any foreign currency. 

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

13 taxable year beginning in a calendar year after 2025, each 

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

15 an amount equal to— 

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

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

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

19 the taxable year begins, determined by substituting 

20 ‘calendar year 2024’ for ‘calendar year 2016’ in sub21 paragraph (A)(ii) thereof. 

22 Any increase determined under the preceding sentence 

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

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

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


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•S 4808 IS

1 Revenue Code of 1986 is amended by inserting after the 

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

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

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

4 this section shall apply with respect to transactions en5 tered into after December 31, 2024. 

Æ 


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