US senator introduces digital asset tax bill with wash sale rule

U.S. Sen. Steve Daines has formally introduced the Advancing Digital Asset Policy Through Taxation Act, or ADAPT Act, a 56-page bill aimed at clarifying tax standards for digital asset transactions including stablecoin payments, network fees, staking, and lending, The Defiant reported. The bill would also apply existing wash sale and constructive sale rules under the tax code to digital assets. A key provision would generally exclude capital gains and losses from taxation when taxpayers use qualifying U.S. dollar-pegged stablecoins to buy goods and services. It would also exempt qualifying consumer transactions from broker reporting requirements, although the exemption would not apply to professional traders or market makers. Most provisions are set to take effect for tax years beginning after Dec. 31, 2026, or for transactions occurring after that date, according to The Defiant.