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The bill reduces tax paperwork and minor tax burdens for casual crypto users by exempting de minimis retail sales, but it preserves taxation when crypto is converted to cash, excludes business receipts from relief, and could reduce future Treasury revenue if thresholds are indexed upward.
Casual taxpayers who make small retail sales of virtual currency can exclude de minimis gains or losses (under $200), reducing tax liability and paperwork for minor transactions.
The rule narrows reporting burdens by aggregating related small transactions and exempting them, simplifying tax compliance for casual virtual-currency users.
Taxpayers who convert even small amounts of crypto to cash or cash equivalents lose the exclusion, so converting can trigger tax on minor gains and create unexpected tax liability.
The $200 thresholds could be indexed upward over time, which may grow the aggregate revenue loss and reduce future tax receipts for the Treasury.
Businesses and self-employed taxpayers who receive virtual currency as property or as income are excluded from the relief, leaving small-business owners subject to tax reporting and liability for routine small crypto receipts.
Based on analysis of 2 sections of legislative text.
Excludes small virtual-currency gains/losses (≤$200 per aggregated transaction) from taxable income, with exceptions and inflation indexing; applies after 2026.
Introduced March 24, 2026 by Theodore Paul Budd · Last progress March 24, 2026
Excludes small gains or losses from the sale or exchange of virtual currency from federal taxable income, but only when the transaction and its gain/loss do not exceed $200 and the exchange is not for cash, cash equivalents, business property, or income-producing property. Related small transactions are aggregated to determine the $200 limit, the threshold is inflation-adjusted after 2027, and the rule applies to transactions entered into after December 31, 2026.