Steve Daines introduces crypto tax bill backed by Tim Scott and other Republicans

Senator Steve Daines introduced the ADAPT Act on Wednesday to create what he called clearer cryptocurrency tax rules. Daines said digital assets have gone mainstream but the tax code has not kept up. Daines said his bill would address stablecoins, network fees, staking and lending. Daines said the bill would also extend wash-sale and constructive-sale rules to digital assets. The bill would exempt small gains or losses on dollar-pegged stablecoins regulated under the GENIUS Act. The bill would exempt cryptocurrency transactions involving a fee of $10 or less. The bill would exclude income from qualified passive staking. The bill would exempt digital asset lending from taxation and simplify the tax treatment of charitable cryptocurrency donations. Senate Banking Committee Chair Tim Scott and Senators Cynthia Lummis and Bernie Moreno are listed as co-sponsors. Democrats have yet to support the bill, according to Politico. Daines introduced the proposal after the CLARITY Act failed to secure the 60 votes needed to advance in the Senate. Key Democratic negotiators who had spent months on the CLARITY Act voted against it.