To amend the Internal Revenue Code of 1986 to exclude from gross income de minimis gains from certain sales or exchanges of virtual currency, and for other purposes.

“139G. Gain from sale or exchange of virtual currency

“(a) In general—Gross income shall not include gain from the sale or exchange of virtual currency for other than cash or cash equivalents.

“(b) Limitation

“(1) In general—The amount of gain excluded from gross income under subsection (a) with respect to a sale or exchange shall not exceed $600.

“(2) Aggregation rule—For purposes of this subsection, all sales or exchanges which are part of the same transaction (or a series of related transactions) shall be treated as one sale or exchange.

“(c) Virtual currency—For purposes of this section, the term virtual currency means a digital representation of value that is used as a medium of exchange and is not otherwise currency under section 988.

“(d) Inflation adjustment—In the case of any taxable year beginning in a calendar year after 2018, the dollar amount in subsection (b) shall be increased by an amount equal to—

“(1) such dollar amount, multiplied by

“(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2017” for “calendar year 1992” in subparagraph (B) thereof.”