Daines Introduces Groundbreaking Crypto Legislation to Protect American Taxpayers

• October 22, 2026

"ADAPT Act" Updates Tax Code, Closes Loopholes, Protects American Innovation

WASHINGTON, D.C. - U.S. Senator Steve Daines today introduced the "Aligning Digital Assets with Principles of Taxation (ADAPT) Act," comprehensive legislation to modernize the federal tax treatment of digital assets and establish clearer, more administrable rules for taxpayers, businesses and the Internal Revenue Service. The bill provides tailored rules where blockchain technology presents genuinely different tax issues, applies familiar tax principles where digital assets function like traditional financial assets, and puts safeguards in place to protect the tax base. By providing taxpayers with tax certainty and clear rules of the road, the bill will remove barriers that make everyday use of regulated stablecoins and blockchain networks impractical to ensure investment and innovation occurs here at home.

Senators Cynthia Lummis (R-Wyo.), Bernie Moreno (R-Ohio) and Tim Scott (R-S.C.) joined Daines in introducing the legislation.

"Digital assets have changed dramatically, but our tax code hasn't kept up, and hardworking Americans are paying the price. The "Adapt Act" will modernize the Internal Revenue Code and make digital assets more accessible for everyday use by reducing unnecessary complexity, increasing compliance, protecting the tax base and supporting U.S. digital asset innovation. As America continues to lead in the development of cutting-edge technology, it's critical that we provide clear guardrails to protect American taxpayers and promote innovation," said Daines.

"Washington's confusing, outdated tax rules have kept digital asset holders and businesses in the dark for decades. The ecosystem desperately needs a common-sense approach that treats crypto fairly while supporting its integration into the U.S. economy, and this legislation takes a step in the right direction," ​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​said Moreno.

"In a world where digital assets are evolving by the day, it is important that we have an up-to-date tax code that reflects our modern economy. By creating clear guidelines, closing loopholes, and applying the same tax rules to traditional securities and digital assets, the ADAPT Act will protect Americans' investments and keep innovation on American soil," said Scott.

Read the bill text HERE.

Background:

The ADAPT Act reforms the Internal Revenue Code by:

• Making everyday payments workable by ending gain-or-loss tracking when Americans use GENIUS Act-regulated dollar stablecoins to buy goods and services, and by exempting network fees of $10 or less.

• Providing parity with traditional financial assets by extending existing rules for securities and commodities, including securities-lending treatment, the mark-to-market election for dealers and traders, the trading safe harbor for foreign investors, and the streamlined rules for charitable gifts of publicly traded stock.

• Closing loopholes by applying the wash sale and constructive sale rules to digital assets and by treating digital asset trading businesses the same as securities and commodities traders under the section 199A deduction.

• Clarifies the treatment of digital asset investment trusts that stake proof-of-stake assets and expands qualifying-income rules for publicly traded partnerships to include specified digital asset income while excluding income from operating digital asset financial-services businesses.

Read a one-pager on the bill HERE and section-by-section HERE.

Statements of Support:

"We're grateful to Senator Daines, Senator Scott, Senator Lummis, Senator Moreno, and the Senate Finance Committee for taking on the need for greater clarity in digital asset tax policy. Current tax rules were not written with digital assets in mind, and we appreciate their work to modernize the tax code and establish clearer, more practical rules for taxpayers and businesses."- Lawrence Zlatkin, Vice President of Tax, Coinbase

"The introduction of the ADAPT Act marks an important moment for digital asset tax policy in the Senate, and reflects Senator Daines' and his team's thoughtful engagement on these issues. Americans who use digital assets have been left to navigate outdated and unclear guidance for far too long. We appreciate Senator Daines' leadership in putting forward a concrete framework to change that. Our members are examining the legislation in detail, and we welcome the opportunity to continue working with Senator Daines and the Finance Committee as the digital asset tax efforts advance. Alongside the progress made by the House Ways and Means Committee, the ADAPT Act brings Congress one step closer to comprehensive digital asset tax legislation, and we look forward to continued momentum in both chambers."- Summer Mersinger, CEO, Blockchain Association

"Americans who use digital assets deserve tax rules that are clear, fair, and built for how this technology actually works. The ADAPT Act advances that goal. We thank Senator Daines and his colleagues for their leadership and stand ready to help move it forward."- Ji Hun Kim, CEO, Crypto Council for Innovation.

"Fidelity Investments applauds Senator Daines for introducing the Aligning Digital Assets with Principles of Taxation Act (ADAPT) and appreciates the effort to advance a more practical and predictable tax framework for digital assets. Clear and workable tax rules are essential to fostering innovation, supporting responsible user adoption, and strengthening the United States' position as a leader in the evolving digital asset marketplace. Fidelity looks forward to engaging with the Senate Finance Committee as this important legislation moves forward." - Fidelity Investments

"The Aligning Digital Assets with Principles of Taxation (ADAPT) Act brings long-overdue clarity to how digital assets are taxed in the United States. The legislation would modernize the tax code to keep pace with digital asset innovation. With clear tax rules, Americans can comply with confidence, innovators can keep building here at home, and the United States can lead the global digital economy. The Digital Chamber applauds Senator Daines for introducing this critical legislation and looks forward to working with Congress to advance it."- The Digital Chamber

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Contact: Gabby Wiggins