Bill · S. 4171· Senate(119-S-4171)
Virtual Currency Tax Fairness Act
- Introduced
- 3/24/2026
- Last activity
- 3/24/2026 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Ted Budd
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the "Virtual Currency Tax Fairness Act," aims to amend the Internal Revenue Code of 1986. It proposes to exclude certain de minimis gains or losses from gross income when a taxpayer sells or exchanges virtual currency. This exclusion applies unless the exchange is for cash, property used in a trade or business, or property held for the production of income. The exclusion is limited to transactions where the total value or the gain/loss does not exceed $200. Additionally, the bill includes a provision for inflation adjustments starting after 2027.
Yes
Does this cut taxes for middle-income families?+3
The bill excludes de minimis gains from virtual currency transactions under $200 from gross income.
Would households on low incomes be better off under this?+2
The de minimis exclusion provides tax relief for small-scale virtual currency transactions.
Would middle-income households be better off under this?+2
The bill prevents taxpayers from having to report small gains or losses from virtual currency exchanges.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Exclusion for Small Transactions: Under Section 2(a), gross income would not include gains or losses from the sale or exchange of virtual currency for certain types of transactions. This provides a specific exclusion for transactions that do not meet certain value or gain thresholds.
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Inflation Adjustments: According to Section 2(a)(d), the $200 limit is subject to an inflation adjustment starting in calendar years after 2027. This allows the dollar amounts to increase based on cost-of-living adjustments.
Potential Negative Impacts for People
-
Transaction Limitations: Under Section 2(a)(b)(1), the tax exclusion will not apply if the total value of the sale or exchange exceeds $200 or if the total gain or loss exceeds $200. This means larger transactions will still be subject to current gross income rules.
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Aggregation of Transactions: Section 2(a)(b)(2) establishes an aggregation rule where all sales or exchanges that are part of the same transaction or a series of related transactions must be treated as a single sale or exchange. This could impact how people calculate their totals for the $200 threshold.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+2Good For Middle Class Households+2
- Economy And Finance
- Reduces Middle Class Taxes+3
- 3/24/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate