,,ii  #aai? ,,congress  #b;d ,session   
,s4 #daga  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,m>* #bd1 #bjbf,mr4    
,budd introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to exclude f gross
 income de m9imis ga9s or losses f c]ta9
 sales or ex*anges ( virtual curr5cy1 & 
= o!r purposes4  #a4 ,%ort title ,?is   
,act may be cit$ z ! ,virtual ,curr5cy  
,tax ,fairness ,act4  #b4 ,virtual      
curr5cy  7a7 ,9 g5]al ,"p ,,iii (       
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #aci,l ! foll[+ new       
section3  #aci,k4 ,de m9imis ga9 or loss
 f sale or ex*ange ( virtual curr5cy    
7a7 ,9 g5]al ,subject to subsection 7b71
 gross income %all n include ga9 or loss
 f ! sale or ex*ange ( virtual curr5cy1 
unless ! sale or ex*ange is =-- 7#a7 ca%
 or ca% equival5ts1  7#b7 any prop]ty   
us$ by ! taxpay] 9 ! active conduct ( a 
trade or bus9ess1 or  7#c7 any prop]ty  

held by ! taxpay] = ! production (      
income 7z describ$ 9 section #bab7b774  
7b7 ,limitation  7#a7 ,9 g5]al          
,subsection 7a7 %all n apply 9 ! case ( 
any sale or ex*ange = :i*-- 7,a7 ! total
 value ( su* sale or ex*ange exce$s     
#bjj1 or  7,b7 ! total ga9 or loss :i*  
w\ld o!rwise be recogniz$ ) respect to  
su* sale or ex*ange exce$s #bjj4  7#b7  
,aggregation rule ,= purposes ( ?is     
subsection1 all sales or ex*anges :i*   
are "p ( ! same transaction 7or a s]ies 
( relat$ transactions7 %all be treat$ z 
"o sale or ex*ange4  7c7 ,virtual       
curr5cy ,= purposes ( ?is section1 ! t]m
 virtual curr5cy means a digital        
repres5tation ( value :i*-- 7#a7        
functions z a unit ( acc\nt1 a /ore (   
value1 or a m$ium ( ex*ange1 &  7#b7 is 
n a repres5tation ( ! ,unit$ ,/ates     
doll> or any =eign curr5cy4  7d7        
,inflation adju/m5t ,9 ! case ( any     
taxable ye> beg9n+ 9 a cal5d> ye> aft]  
#bjbg1 ea* doll> am\nt 9 subsection     
7b77#a7 %all be increas$ by an am\nt    

equal to-- 7#a7 su* doll> am\nt1        
multipli$ by  7#b7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = !      
cal5d> ye> 9 :i* ! taxable ye> beg9s1   
det]m9$ by sub/itut+ cal5d> ye> #bjbf = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  ,any increase det]m9$ "u ! prec$+
 s5t5ce %all be r\nd$ to ! ne>e/        
multiple ( #aj4  4  7b7 ,cl]ical am5dm5t
 ,! table ( sections = "p ,,iii (       
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] ! item relat+ to section #aci,l ! 
foll[+ new item3  ,sec4 #aci,k4 ,de     
m9imis ga9 or loss f sale or ex*ange (  
virtual curr5cy4  4  7c7 ,effective date
 ,! am5dm5ts made by ?is section %all   
apply ) respect to transactions ent]$   
into aft] ,decemb] #ca1 #bjbf4