Sen. Steve Daines Releases Text of ADAPT Act to Change Crypto Tax Rules

# What the ADAPT Act proposes

# Stablecoin treatment

The bill creates a limited tax relief pathway for everyday spending with qualifying dollar stablecoins. If a stablecoin meets three conditions, spending it on goods or services would not trigger recognition of gain or loss, and brokers would not be required to report those transactions:

• The stablecoin must be issued under the GENIUS Act framework.
• It must appear on a quarterly Treasury Department list showing the coin held within 3% of $1.00.
• The stablecoin must have been bought by the taxpayer within 3% of $1.00.

These criteria are intended to narrow the relief to stablecoins that reliably maintain parity with the dollar and that taxpayers acquire near face value.

# Network and gas fees

The ADAPT Act would treat network or gas fees paid in crypto as tax-free dispositions when the total fees for a given transaction are $10 or less. The text includes anti-structuring rules to prevent splitting transactions to stay under the exemption threshold.

# Wash-sale and constructive-sale rules

For the first time, the bill would extend wash-sale rules to traded digital assets, excluding qualified stablecoins. Under those rules, investors could not claim a tax loss if they sold an asset at a loss and repurchased a substantially identical asset within 30 days. The bill treats tokenized versions of stocks as substantially identical to the underlying shares.

# Other provisions and next steps

The ADAPT Act would also address taxation around staking and lending, and extend constructive-sale doctrine to digital assets. After release, the bill now moves to committee review. Committee approval would be required for it to reach a full Senate vote.

# Context in the broader policy landscape

# What this means for users and markets

Retail users who pay with qualifying dollar stablecoins could see simpler tax outcomes for routine purchases. Traders should plan for wash-sale constraints on loss harvesting for most traded digital assets. Miners and stakers retain explicit exemptions for rewards. Issuers aiming for the qualified-stablecoin pathway would need to meet GENIUS Act issuance standards and Treasury transparency requirements.