Senate Republicans Formally Introduce 56-Page Crypto Tax…
By Karthik Subramanian
AI summary of the source article
Senate Republicans, led by Senator Steve Daines, formally introduced the 56-page ADAPT Act to reform federal digital-asset taxation. Under the proposed legislation, consumers using qualifying regulated stablecoins for goods and services, as well as users paying network gas fees of $10 or less, would generally receive gain-or-loss recognition relief. However, the bill also tightens oversight by extending traditional wash-sale and constructive-sale rules to digital assets to prevent tax-loss harvesting. Most provisions would take effect after December 31, 2026. The legislation follows a separate digital-asset tax package advanced by the House Ways and Means Committee in September.
Why it matters
The bill addresses how Americans are taxed when spending, staking, lending, mining, or trading digital assets, aiming to eliminate taxable events for routine transactions while closing tax-loss harvesting loopholes.
Key facts
- Senator Steve Daines introduced the 56-page ADAPT Act alongside Senators Cynthia Lummis, Tim Scott, and Bernie Moreno on September 30.
- Qualifying stablecoin payments and network transaction fees of $10 or less would be granted gain-or-loss recognition relief.
- The bill extends traditional wash-sale and constructive-sale rules to digital assets, with most provisions taking effect after December 31, 2026.