Crypto

Senate Bill Seeks Tax-Free Stablecoin Purchases and Ends Wash-Sale Loophole

Guavy AI Editorial Team Published October 1, 2026

Instruments

BTC USDT USDC XRP

A new Senate bill aims to make small stablecoin purchases tax-free and close the wash-sale loophole for Bitcoin and XRP holders.

The bill, introduced by Senator Steve Daines of Montana, is backed by Senate Banking Committee Chair Tim Scott, as well as Senators Cynthia Lummis and Bernie Moreno.

The proposed changes to the tax code would apply a de minimis exemption - essentially a rule that ignores small amounts too trivial to track - for small stablecoin purchases. This could have a significant impact, considering Tether (USDT) and USDC together have a market value approaching $260 billion.

Both the Senate and House bills would close the wash-sale loophole, forcing holders to wait 30 days before repurchasing Bitcoin or XRP after a loss sale. This means that individuals who want to capitalize on losses may miss any price rallies in the meantime.

Senate Bill Seeks Tax-Free Stablecoin Purchases and Ends Wash-Sale Loophole

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