Senate Bill Seeks to Close Crypto Loophole for Small Stablecoin Purchases

Senator Steve Daines of Montana has introduced a comprehensive 56-page crypto tax bill that aims to make small stablecoin purchases tax-free. The bill also seeks to prevent holders of Bitcoin (BTC) and XRP from claiming tax losses when they sell and immediately buy back their coins.

The Senate bill proposes a de minimis exemption, which would ignore small amounts too trivial to track for small stablecoin purchases. However, the specific dollar limit hasn't been reported yet. This exemption could have a significant impact on Tether (USDT) and USDC, together worth around $260 billion.

The House version of the bill, known as H.R. 10357 or the Digital Asset Tax Certainty Act, includes a $10 de minimis exception that applies to network fees paid in cryptocurrency rather than purchases. It is set to take effect in 2028 and excludes individuals who conducted more than 5,000 transfers in the prior year.

Both the Senate and House bills would apply the wash-sale rule to digital assets, preventing holders from claiming a loss on stocks or securities they buy back within 30 days before or after a sale. This means that Bitcoin or XRP holders could no longer sell their assets at a loss, offset that loss against other gains, and then repurchase the same coins within minutes.