Republican Senator Steve Danes has released the contents of a proposed cryptocurrency tax bill.

Republican Senator Steve Danes has unveiled the ADAPT Crypto Tax Act, which allows stablecoins to be used tax-free.

Republican Senator Steve Danes of Montana unveiled a new bill to reform digital asset policies on Wednesday called the Aligning digital assets with Principles of Taxation Act, or ADAPT Act, which he co-sponsored with Senators Ms. Slams, Moreno and Tim Scott, aimed at laying out tax rules for assets like stablecoins.

The unveiling of the bill comes as legislators and regulators are accelerating their push for regulation for digital assets after US President Donald Trump took office with a pro-crypto policy. Last month, the Clarity Act failed in the Senate, and just one day later, the House Ways and Means Committee unanimously passed legislation to reform cryptocurrency taxation.

The essence of the ADAPT Act

Dens wrote on X that "digital assets have entered the mainstream, but politicians haven't caught up", noting that his bill would create clearer rules for stablecoins, network protocols, stacking and lending while expanding familiar tax laws such as wash sale and constructive sale to cover digital assets.

A stablecoin is a day-to-day expense. It doesn't pay taxes.

One of the key proposals in the bill is to provide tax relief for people who use stablecoins on a day-to-day basis, so that if they spend their US dollar-denominated value on goods or services, there will be no profit or loss and brokers won't have to report those transactions.

In order to qualify, a stablecoin must be issued under the GENIUS Act and appear on a U.S. Treasury Department's periodic list that states that the coin holds value within 3% of 1.00 US dollars, and users must purchase it at prices other than1.00 US dollars.3%

Network tariffs and wash sale rules

Additionally, network fees or gas charges paid in crypto are not considered to be a taxable asset distribution as long as the fee for one transaction does not exceed US$10, with anti-dividing rules in place to avoid taxes.

The legislature also proposed to apply the wash sale rule to crypto for the first time, which prohibits investors from claiming tax losses if they sell an asset and buy it back within 30 days. Investors in stocks have long been bound by this rule, whereas cryptocurrency traders can immediately sell their losses and buy them back.

The wash sale rule under this draft would cover commonly traded digital assets, with the exception of qualified stablecoins. Assets purchased prior to the bill's enactment will be subject to grandfather protections, including rewards from staking, rewards for mining and random purchase exemptions.

In addition, the Tokenlice version shares will be counted as "substantially identical" to the original stock.

The next step.

The ADAPT Act now needs to go through the House of Representatives, which must approve it before a bill can be put to a vote in the full Senate.

For those who follow the crypto market in the U.S., what's striking is the direction of this bill in the legislature, as well as the progression of another cryptocurrency tax bill that has already been approved by the Senate Appropriations and Revenue Committee, which reflects how the push for taxes on digital assets is moving forward through multiple channels simultaneously.