Daines Unveils ADAPT Act for Crypto Tax Rules

Republican Senator Steve Daines has introduced a fresh legislative proposal aimed at revising tax regulations for digital assets.

On Wednesday, the Montana senator unveiled the Aligning Digital Assets with Principles of Taxation Act, referred to as the ADAPT Act. The legislation, co-sponsored by Senators Lummis, Moreno, and Tim Scott, seeks to establish rules for assets such as stablecoins.

Since President Trump took office with a pro-cryptocurrency stance, lawmakers and regulators have been rapidly working on drafting digital asset regulations. The Clarity Act failed in the Senate last month, and the following day the House Ways and Means Committee passed legislation by a wide margin that would overhaul the taxation of cryptocurrency.

Senator Daines wrote on X: “Digital assets have moved into the mainstream, but the tax code hasn’t kept up.”

Digital assets have moved into the mainstream, but the tax code hasn’t kept up. 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.

— Steve Daines (@SteveDaines) September 30, 2026

“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 legislation provides that regular users of certain stablecoins receive tax relief for ordinary transactions. Purchasing goods or services with a qualifying dollar stablecoin would not result in capital gains or losses, and brokers would not be required to report these transactions.

For a stablecoin to qualify, it must be issued under the GENIUS Act, appear on a Treasury list updated quarterly of coins that have stayed within 3% of $1.00, and be purchased by the user within 3% of $1.00.

Separately, network fees or gas fees paid in cryptocurrency would be considered tax-free dispositions if the total fees per transaction are $10 or less, subject to anti-structuring rules.

The legislation would also, for the first time, impose wash sale rules on cryptocurrency. These rules prevent investors from taking a tax loss if they sell an asset and repurchase it within 30 days. Stock investors have been subject to these rules for a long time, whereas crypto traders have been able to sell at a loss and buy back immediately.

The wash sale rules would apply to traded digital assets except for qualified stablecoins. Assets acquired before the law takes effect would be grandfathered, and staking rewards, mining rewards, and regular recurring purchases would be exempt.

Tokenized representations of stocks would be considered “substantially identical” to the underlying shares.

The ADAPT Act now moves to committee, where it must be approved before it can advance to a full Senate vote.