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I
116TH CONGRESS
2D SESSION
H. R. 5635
To amend the Internal Revenue Code of 1986 to exclude from gross income
gain from disposition of virtual currency in a personal transaction.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 16, 2020
Ms. DELBENE (for herself, Mr. SCHWEIKERT, Mr. SOTO, and Mr. EMMER)
introduced the following bill; which was referred to the Committee on
Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to exclude
from gross income gain from disposition of virtual cur-
rency in a personal transaction.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Virtual Currency Tax
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Fairness Act of 2020’’.
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SEC. 2. VIRTUAL CURRENCY.
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(a) IN GENERAL.—Part III of subchapter B of chap-
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ter 1 of the Internal Revenue Code of 1986 is amended
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by inserting after section 139F the following new section:
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‘‘SEC. 139G. GAIN FROM DISPOSITION OF VIRTUAL CUR-
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RENCY.
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‘‘(a) IN GENERAL.—Gross income of an individual
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shall not include gain, by reason of changes in exchange
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rates, from the disposition of virtual currency in a per-
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sonal transaction (as such term is defined in section
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988(e)). The preceding sentence shall not apply if the gain
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which would otherwise be recognized on the transaction
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exceeds $200.
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‘‘(b) VIRTUAL CURRENCY.—For purposes of this sec-
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tion, the term ‘virtual currency’ means a digital represen-
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tation of value that is used as a medium of exchange and
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is not otherwise currency under section 988.’’.
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(b) CLERICAL AMENDMENT.—The table of sections
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for part III of subchapter B of chapter 1 of such Code
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is amended by inserting after the item relating to section
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139F the following new item:
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‘‘Sec. 139G. Gain from disposition of virtual currency.’’.
(c) REPORTING OF GAINS OR LOSSES.—The Sec-
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retary shall issue regulations providing for information re-
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turns on virtual currency transactions for which gain or
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loss is recognized.
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(d) EFFECTIVE DATE.—The amendments made by
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this section shall apply with respect to transactions en-
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tered into after December 31, 2019.
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