Congress quietly exempts crypto trades from taxes while stocks remain taxed
S. 4171 — Virtual Currency Tax Fairness Act · Filed by Ted Budd (R-NC) · Introduced Mar 24, 2026 · Referred to committee
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill exempts gains and losses from virtual-currency (cryptocurrency) trades under $200 per transaction from federal income tax, effective for transactions after December 31, 2026. The exemption does not apply if the transaction involves cash, business property, or income-producing property. The $200 threshold will be adjusted annually for inflation starting in 2028. In effect, this creates a tax-free zone for small cryptocurrency trades while traditional securities remain subject to capital-gains tax.
Why we flagged it
The bill creates a de minimis exemption from federal income tax on gains/losses from virtual currency transactions below $200 per transaction. This is fundamentally a tax-code carve-out for a specific asset class, not a general tax-fairness measure.
What the text implies
- The $200 threshold exempts the vast majority of retail cryptocurrency trades (most retail transactions are under $200), effectively creating a tax-free trading zone for small-to-medium holders while large institutional traders remain subject to capital-gains tax.
- Aggregation rule allows taxpayers to structure transactions to stay under the $200 limit per 'transaction,' potentially enabling tax avoidance through artificial transaction splitting.
The full analysis lists 5 implications of this text.
Who stands to gain
cryptocurrency exchanges; retail cryptocurrency traders; crypto asset managers