Sponsors
11 Republican
Ted BuddSenator · NC
This legislation amends the Internal Revenue Code to exempt de minimis gains or losses on small virtual currency transactions from gross income. Under the bill, personal transactions with a total value or gain/loss under $200 would not trigger tax reporting requirements, provided they are not exchanged for cash, business assets, or income-producing property. The $200 threshold is indexed for inflation starting after 2027.
The current tax treatment of virtual currency in the United States presents a significant barrier to its adoption as a medium of exchange. Under existing Internal Revenue Service rules, every transaction utilizing cryptocurrency—such as purchasing a cup of coffee or paying for small services—is treated as a taxable event, requiring users to track and report capital gains or losses regardless of the transaction size. This creates an immense compliance burden for everyday users and discourages the practical use of digital assets. By exempting transactions under $200 from capital gains tax, this legislation removes a major operational hurdle for consumer crypto payments. By limiting the exemption to non-cash, personal transactions, the bill specifically targets everyday commerce while preventing exploitation for larger trading activities or business operations. This regulatory adjustment represents a significant step toward integrating cryptocurrencies into the mainstream financial system as functional payment methods, ultimately promoting greater utility, innovation, and user adoption in the digital asset space.
Every member who has sponsored, cosponsored or voted on this bill. Pick a vote to see how each member voted on it, or narrow by party, name or state.
1 Republican