Sen. Steve Daines' ADAPT Act, backed by three Republican cosponsors, would also let dealers and traders mark positions to market and exempt network fees of $10 or less. Both chambers now have crypto tax bills.
Crypto · FinancialMarkets.com · October 2, 2026 · Tickers: BTC, ETH, COIN, HOOD
A crypto tax bill introduced in the Senate this week would end a tax-loss strategy now open to crypto holders and remove tax from many purchases made with stablecoins.
The Aligning Digital Assets with Principles of Taxation Act, or ADAPT Act, released by Sen. Steve Daines of Montana, would apply wash-sale and constructive-sale rules to digital assets other than regulated stablecoins.
Wash sales
The wash-sale rule bars investors from claiming a tax loss on a security they sell and quickly buy back. Because it has applied to securities, crypto holders have been able to sell at a loss, repurchase immediately and keep the deduction while holding the same position. The bill would end that for bitcoin, ether and other digital assets. The rule would apply to sales after enactment and would not reach back to assets acquired earlier.
The constructive-sale rule would also apply, treating certain hedges that lock in a gain as a sale for tax purposes.
Stablecoins
The bill would not recognize gain or loss when a listed stablecoin is used to buy goods or services. Sales made as investments, and activity by traders and dealers, are excluded. The Treasury Department would list GENIUS Act stablecoins that traded within 3% of $1 over the prior 12 months, and the taxpayer must have acquired the coin within 3% of $1. The stablecoin provision would apply to transactions after Dec. 31, 2026.
Other provisions
Dealers and traders in digital assets could elect mark-to-market treatment, recognizing gains and losses each year on the value of their positions. Network transaction fees of $10 or less would be exempt. The bill also sets rules for income from validating transactions. It would direct the Treasury to issue guidance within 12 months allowing foreign foundations tied to decentralized autonomous organizations to reorganize as U.S. corporations, with safe harbors for entities formed before Sept. 24.
Where it stands
The House Ways and Means Committee advanced its own crypto tax bill, H.R. 10357, by a vote of 38 to 5 last month. With a Senate vehicle now in place, both chambers have legislation. Sens. Tim Scott, Cynthia Lummis and Bernie Moreno are cosponsors of the Senate bill, and like Daines all are Republicans.
For investors, the wash-sale change would matter at year-end, when many holders harvest losses to offset gains. If enacted, that practice would come with a waiting period.
Next
A Finance Committee hearing or markup, any Democratic support and reconciliation with the House bill would show whether the proposal is moving toward a vote.