Senator Steve Daines of Montana introduced the Aligning Digital Assets with Principles of Taxation Act, also known as the ADAPT Act. The proposal, co-sponsored by Senators Lummis, Moreno, and Tim Scott, aims to establish specific tax guidelines for digital assets including stablecoins, staking, and lending.
The bill introduces tax relief for everyday stablecoin usage. Transactions involving qualifying stablecoins for goods or services would not trigger capital gains or losses, and brokers would be exempt from reporting these specific activities. To qualify, coins must maintain a value within 3% of $1.00 and meet criteria set by the GENIUS Act.
Under the proposed legislation, network or gas fees paid in cryptocurrency would be tax-free if the transaction cost is $10 or less. The bill also introduces wash sale rules for digital assets, preventing investors from claiming tax losses if they sell and repurchase an asset within 30 days.
The ADAPT Act includes exemptions for staking rewards, mining rewards, and recurring purchases. Assets acquired before the potential enactment of the law would be grandfathered. Additionally, the bill classifies tokenized stocks as substantially identical to the underlying shares. The proposal is currently awaiting committee review.
