ADAPT Act Proposes Tax Relief for Stablecoin Payments and Blockchain Fees

The Aligning Digital Assets with Principles of Taxation Act, or ADAPT Act, is a proposed federal tax bill introduced by Sen. Steve Daines on September 30, 2026. The bill aims to establish specific tax rules for several common digital-asset transactions. The ADAPT Act targets stablecoin payments, small blockchain fees, wash sales, staking, mining, and lending. Most proposed changes would apply to tax years or transactions after 2026.

One major provision would provide tax relief for qualifying US dollar stablecoin payments used to purchase goods and services. To qualify, stablecoins would need to stay close to USD 1, with 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. The bill would extend wash-sale rules to digital assets, restricting loss deductions after certain rapid sales and repurchases.

The legislation also addresses eligible dealers and traders, who could elect mark-to-market accounting under the proposal. The bill includes rules for certain digital-asset lending transactions and how some foreign investors trading through US brokers receive tax treatment. The proposal would further define and classify different types of digital assets.