Republican senator Steve Daines has released a new proposal to update the tax code with regards to digital assets.
The senator for Montana released the Aligning Digital Assets with Principles of Taxation Act — or ADAPT Act — sponsored by Sen. Daines with Sens. Lummis, Moreno, and Tim Scott on Wednesday, aiming to draft rules for assets like stablecoins.
Lawmakers and regulators are fast trying to draft rules for digital assets since U.S. President Trump took office on a pro-crypto platform. The Clarity Act collapsed in the Senate last month; one day after, the House Ways and Means Committee overwhelmingly approved legislation that would revamp the tax treatment of cryptocurrency.
“Digital assets have moved into the mainstream, but the tax code hasn’t kept up,” Senator Daines wrote on X.
“My bill would create clearer rules for stablecoins, network fees, staking and lending — while extending familiar tax rules like wash sales and constructive sales to digital assets.”
The bill proposes that everyday users of stablecoins get tax relief for everyday uses. Spending a qualifying dollar stablecoin on goods or services wouldn’t trigger gain or loss, and brokers wouldn’t have to report those transactions.
To qualify, the stablecoin must be issued under the GENIUS Act framework, appear on a quarterly Treasury list of coins that have held within 3% of $1.00, and have been bought by you within 3% of $1.00.
Separately, network or gas fees paid in crypto would be tax-free dispositions as long as the fees for a given transaction total $10 or less, with anti-structuring rules.
The bill would also apply wash sale rules to crypto for the first time. The rules bar investors from claiming a tax loss if they sell an asset and buy it back within 30 days. Stock investors have long been bound by them, while crypto traders could sell at a loss and immediately rebuy.
The rules would cover traded digital assets other than qualified stablecoins. Assets bought before the bill becomes law would be grandfathered, and staking rewards, mining rewards and regular recurring purchases would be exempt.
Tokenized versions of stocks would count as “substantially identical” to the underlying shares.
The ADAPT Act now heads to committee, which would need to approve it before it could reach a vote by the full Senate.