[Analysis] North Carolina congressman reintroduces the Virtual Value Tax Fix Act crypto tax bill

North Carolinian congressman Ted Budd has reintroduced a tax bill aimed at refining the Internal Revenue Service’s treatment of cryptocurrencies. The Virtual Value Tax Fix Act would effectively end the double taxation on cryptocurrency transactions by amending 1986’s Internal Revenue Code. Under the 1986 Code, gains and losses in transactions of real property of like-kind remain unrecognized. “The use of digital assets is already treated as a sale of the asset, even though the economic reality of the transaction is a purchase of a simple consumer good,” Budd said. If passed, the act would free cryptocurrency transactions from double taxation and record-keeping immediately.