Republican Senator Steve Daines Releases Text of Proposed Crypto Tax Plan

According to Bitcoin Magazine, Republican Senator Steve Daines of Montana released a new proposal to update the tax code regarding digital assets. Sponsored by Senators Daines, Lummis, Moreno, and Tim Scott, the Aligning Digital Assets with Principles of Taxation Act, or ADAPT Act, aims to create clearer rules for stablecoins, network fees, staking, and lending.

As reported by Bitcoin Magazine, the bill proposes tax relief for everyday users spending qualifying dollar stablecoins on goods or services without triggering a gain or loss, and exempts brokers from reporting those transactions. Qualifying stablecoins must be issued under the GENIUS Act framework, appear on a quarterly Treasury list holding within 3% of $1.00, and be purchased within 3% of $1.00. Network or gas fees totaling $10 or less would be tax-free dispositions with anti-structuring rules.

Bitcoin Magazine noted the legislation would apply wash sale rules to crypto for the first time, barring investors from claiming a tax loss when rebuying within 30 days. The ADAPT Act now heads to committee for approval before reaching a full Senate vote.