Senate Republicans Introduce New Crypto Tax Bill to Revise Digital Asset Rules
Senate Republicans have formally introduced a new cryptocurrency tax bill aimed at establishing clearer federal tax rules for digital assets, including stablecoin payments, network fees, staking, lending and trading.
According to data shared by Cointelegraph, the legislation was introduced as lawmakers in Washington continue efforts to establish a more defined framework for digital-asset taxation. The proposal is the Aligning Digital Assets with Principles of Taxation Act, or ADAPT Act, introduced by Republican Sen. Steve Daines of Montana on Sept. 30.
The 56-page bill was also backed by Republican Senators Cynthia Lummis, Tim Scott and Bernie Moreno.
ADAPT Act Targets Stablecoin Payments and Network Fees
The legislation would create specific tax treatment for certain digital-asset transactions rather than applying existing rules designed for traditional financial assets in every circumstance.
One of the central provisions would allow qualifying consumers to use dollar-denominated stablecoins to purchase goods and services without recognizing a capital gain or loss on those transactions, subject to conditions established by the bill. The proposal would also exempt qualifying digital assets used to pay network, transaction or gas fees of $10 or less from gain-or-loss recognition.
The stablecoin provision applies to regulated dollar stablecoins that meet requirements established under the legislation. The proposed consumer exemption would not extend to traders and market makers, according to descriptions of the bill.
Crypto Trading Rules Would Also Change
The ADAPT Act would extend several established tax principles for traditional financial assets to digital assets.
Among its provisions are wash-sale and constructive-sale rules for digital assets, addressing transactions that can be used to manage or realize tax losses. The bill also includes provisions covering securities lending, mark-to-market accounting for eligible dealers and traders, foreign-investor trading activity and charitable contributions of digital assets.
Other sections address the tax treatment of staking, mining, lending and digital-asset investment trusts. The proposal would also modify rules concerning publicly traded partnerships and certain income generated from digital-asset activities.
Bill Remains a Proposal
The introduction of the ADAPT Act does not change federal tax law immediately. The measure would still need to advance through Congress and receive the required approval before becoming law.
Most provisions are intended to apply to taxable years or transactions occurring after Dec. 31, 2026, although individual sections contain their own effective-date provisions.
The Senate proposal follows separate action in the House, where the Ways and Means Committee has advanced its own digital-asset tax legislation. If both efforts progress, lawmakers would eventually need to reconcile differences between the Senate and House approaches.
For now, the next stage for the ADAPT Act is consideration within the Senate legislative process after its introduction on Sept. 30.
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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