Republicans Back ADAPT Act to Clarify Cryptocurrency Tax Rules

Sen. Steve Daines (R-Mont.) has introduced the ADAPT Act, aiming to clarify tax rules for cryptocurrencies. The bill reportedly has support from key Republican senators but not from Democrats.

Daines stated that digital assets have 'gone mainstream' but the tax code hasn't kept up with their growth. He added that his bill would create clearer rules for stablecoins, network fees, staking, and lending.

The ADAPT Act includes exemptions for small gains or losses on GENIUS Act-regulated dollar-pegged stablecoins, as well as cryptocurrency transactions involving a fee of $10 or less. It also excludes income from 'qualified' passive staking and exempts digital asset lending from taxation.