U.S. Senator Steve Daines introduces 56-page digital asset tax bill

  • Senator Steve Daines introduced the 56-page ADAPT Act with support from three Senate colleagues.
  • The proposal would apply wash-sale restrictions to Bitcoin, XRP and other digital assets.
  • House lawmakers advanced H.R. 10357 by 38-5, including a $10 network-fee exemption.

U.S. Sen. Steve Daines has formally introduced the 56-page Advancing Digital Asset Policy Through Taxation Act, or ADAPT Act, with backing from Senate Banking Committee Chair Tim Scott and Senators Cynthia Lummis and Bernie Moreno. The proposal would generally exclude capital gains and losses when qualifying U.S. dollar-pegged stablecoins are used for small purchases, although the Senate bill does not specify a dollar limit. It would also apply the tax code's wash-sale rule to digital assets, potentially ending the ability of Bitcoin and XRP holders to sell at a loss and immediately repurchase the same coins. The measure follows Daines' circulation of a draft the previous week and overlaps with a House Ways and Means Committee bill that passed 38-5 on Sept. 16. The House proposal includes a $10 exemption for cryptocurrency-paid network fees beginning in 2028, rather than a general exemption for small purchases. Current law remains in effect unless Congress passes legislation and it is signed into law.

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