Daines Introduces ADAPT Act With Crypto Tax Changes

Spending crypto can create a tax calculation even when the purchase is routine. On September 30, Republican Sen. Steve Daines introduced the Aligning Digital Assets with Principles of Taxation Act, or ADAPT Act, proposing changes to federal tax rules for digital assets, according to Daines’ announcement and bill summary. Senators Cynthia Lummis, Bernie Moreno and Tim Scott joined as sponsors.

If enacted, the proposal would reduce some tax accounting for eligible stablecoin spending while extending familiar securities rules to parts of crypto trading.

Which stablecoin payments would qualify?

The bill would let users buy goods and services with certain U.S. dollar stablecoins without recognizing a gain or loss on each payment. To qualify, a stablecoin must be identified on a Treasury list, issued at least quarterly, and the user must have acquired it at a price within 3% of $1.

That treatment would not apply to stablecoin traders, brokers or dealers. The proposal also requires taxpayers to keep records that distinguish eligible stablecoin transactions from others. Related broker information-reporting would be exempt for transactions that qualify.

The bill would apply this change to transactions after December 31, 2026. It also proposes excluding digital asset network fees of $10 or less from gain-or-loss calculations.

What would change for traders and crypto businesses?

The ADAPT Act would extend wash-sale and constructive-sale rules to digital assets. Wash-sale rules restrict claiming a loss when an asset is sold and quickly repurchased; applying them to crypto would limit that tax-loss strategy.

Dealers and traders could elect mark-to-market accounting for covered digital assets. That method counts assets at market value at the end of the tax year, with gains or losses reflected for tax purposes. The bill also addresses digital asset lending and extends certain securities-lending tax treatment to traded digital assets.

For mining and other validation activity, it proposes rules for where related income is sourced for tax purposes. It also sets out treatment for investment trusts that stake proof-of-stake assets.

Is the proposal in effect now?

No. The ADAPT Act is a proposal, so users and businesses remain subject to current tax law unless Congress passes it and it is enacted. Bloomberg Tax reported that Daines circulated a draft before its formal introduction, and his office expected it to be introduced the following week.

The bill covers different tax situations with separate provisions and effective dates; its stablecoin-payment rule is scheduled to apply after 2026. For now, the proposal signals potential changes for qualifying stablecoin payments, small network fees and trading strategies, but it does not change filing obligations today.

Sources

• Daines’ announcement and bill summary — forth.news