Daines' ADAPT Act Seeks Clarity on Cryptocurrency Tax Rules

A new bill has been introduced in the Senate to create 'clearer' tax rules for cryptocurrencies. Sen. Steve Daines (R-Mont.) introduced the ADAPT Act on Wednesday, aiming to update the tax code to reflect the growing mainstream use of digital assets.

The bill would exempt small gains or losses on GENIUS Act-regulated dollar-pegged stablecoins and cryptocurrency transactions involving a fee of $10 or less. It also excludes income from 'qualified' passive staking and exempts digital asset lending from taxation.

Key Republicans, including Senate Banking Committee Chair Tim Scott (R-S.C.), Sen. Cynthia Lummis (R-Wyo.), and Sen. Bernie Moreno (R-Ohio), have co-sponsored the bill. However, Democrats have yet to support it, according to Politico.