U.S. Senate Introduces 56-Page Crypto Tax Bill With Stablecoin Exemption

U.S. Sen. Steve Daines advances a proposed crypto tax framework covering stablecoin payments, wash-sale rules

U.S. Sen. Steve Daines has introduced a 56-page bill aimed at updating federal tax rules for digital assets, including a proposed exemption for certain small stablecoin payments and new wash-sale rules for cryptocurrency.

The legislation, known as the Aligning Digital Assets with Principles of Taxation Act, or ADAPT Act, was introduced as lawmakers continue efforts to establish clearer tax treatment for digital assets. Daines has been developing a broader digital-asset tax framework for months, arguing that existing tax rules were written before blockchain technology emerged.

According to Coin Bureau, which cited Politico in a post on X, the proposal has backing from Senate Banking Committee Chairman Tim Scott, Sen. Cynthia Lummis and Sen. Bernie Moreno. The three senators have separately played prominent roles in Senate digital-asset legislation, including work on broader market-structure legislation.

Stablecoin Payments Targeted for Tax Relief

One of the bill's central provisions concerns the use of stablecoins for everyday purchases.

The proposal would generally prevent taxpayers from having to recognize capital gains or losses when compliant U.S. dollar stablecoins are used to purchase goods and services. Qualifying consumer transactions would also receive an exemption from certain broker information-reporting requirements, although the exemption would not apply to traders and market makers.

The provision addresses a longstanding issue in the U.S. tax treatment of digital assets, where transactions can create tax-reporting obligations even when an asset is primarily being used as a means of payment.

The bill would also establish a separate exemption for digital assets used to pay network, transaction or gas fees of $10 or less, according to details reported on the legislation.

Crypto Wash-Sale Rules Would Be Expanded

Another major change would extend wash-sale rules to digital assets. The provision is designed to apply existing tax principles to cryptocurrency transactions and address the use of loss-generating trades for tax purposes.

The proposal also covers constructive-sale rules, staking, lending and other digital-asset activities. Daines previously said his framework was intended to reduce unnecessary complexity while increasing compliance and protecting the tax base.

The Senate proposal comes as Congress considers multiple pieces of digital-asset legislation. The Senate Banking Committee has separately advanced the Digital Asset Markets Clarity Act, while the House Ways and Means Committee passed its own digital-asset tax legislation in September.

Bill Still Requires Congressional Action

The ADAPT Act remains a legislative proposal and would need to pass Congress before becoming law. Most of its provisions would apply to tax years or transactions after Dec. 31, 2026, according to published summaries of the bill.

The introduction gives the Senate a separate digital-asset tax proposal to consider alongside the House legislation, while Daines and other lawmakers continue working on broader rules for cryptocurrency taxation.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.