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Sen. Steve Daines introduced the Aligning Digital Assets with Principles of Taxation Act, or ADAPT Act, on September 30, 2026. The proposal seeks specific federal tax rules for several common digital-asset transactions.
The new crypto tax bill covers stablecoin payments, small blockchain fees, wash-sale restrictions, staking, mining, and lending. Most proposed changes would apply to tax years or transactions after 2026.
Still, the ADAPT Act has not changed current tax law. It must move through Congress, and lawmakers could alter its provisions before final approval.
A major provision would provide tax relief for qualifying US dollar stablecoin payments used to purchase goods and services. Conditions would determine which stablecoins and transactions qualify.
Early reports say qualifying coins would need to stay close to USD 1. The framework discussed around the proposal uses a range of nearly 3% around that level.
The bill would also change the treatment of small blockchain transaction costs. Under current tax treatment, using digital assets to pay gas or network fees can create a taxable transaction.
Under the ADAPT Act, qualifying networks, transactions, or gas fees of USD 10 or less would receive different treatment. The provision includes limits for some traders, dealers and high-volume users.
These provisions focus on transactions that can occur during routine blockchain activity. Stablecoin users frequently make payments, while network participants pay fees when they transfer assets or interact with blockchain applications.
The ADAPT Act would also extend wash-sale rules to digital assets. Similar rules already apply to securities and restrict loss deductions after certain rapid sales and repurchases.
Under the proposed framework, crypto traders could face similar restrictions. A trader who sells a digital asset at a loss and quickly buys it back could lose the immediate tax benefit.
The provision would not eliminate all tax-loss harvesting. Instead, it would restrict loss claims when transactions meet the conditions covered by the proposed wash-sale rules. The legislation also addresses eligible dealers and traders. Some could elect mark-to-market accounting under the proposal.
In addition, the bill includes rules for certain digital-asset lending transactions. It also addresses how some foreign investors trading through US brokers receive tax treatment. The proposal would further define and classify different types of digital assets. These definitions would help determine how particular transactions fit within the proposed tax framework.
The ADAPT Act includes provisions for staking and mining rewards. It sets rules covering when certain rewards become taxable and where the resulting income comes from for tax purposes.
Those provisions would matter for people who receive digital assets through network participation rather than purchases. Stakers and miners would therefore need to follow the final language if Congress eventually passes the legislation.
The bill also proposes changes involving charitable donations of widely traded digital assets. Reports indicate that qualifying donations could avoid a formal appraisal requirement under the proposed framework.
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Meanwhile, the legislative process remains unfinished. After its September 30 introduction, the bill must advance through the Senate before moving through the broader congressional process. Congress would also need to reconcile relevant provisions with related House legislation. Both chambers must approve final legislation before it can reach the president.
Most ADAPT Act provisions target tax years beginning after 2026, which could place some changes in 2027. Individual provisions may follow different effective dates.
Until Congress changes federal law, current tax requirements remain in force. Consumers, active traders, stakers, miners, businesses and dealers therefore remain subject to existing rules while lawmakers consider the proposal.
The ADAPT Act proposes new tax treatment for stablecoin payments, small network fees, wash sales, staking, mining and lending. Most changes could begin after 2026 if Congress approves them. Until then, current digital-asset tax rules remain in effect.
