Tim Scott, Key Republicans Back New Bill Aimed to Create 'Clearer' Crypto Tax Rules: Democrats Reportedly

Sen. Steve Daines (R-Mont.) introduced a bill on Wednesday to create “clearer” tax rules for cryptocurrencies, reportedly garnering support from key Republican senators but none from Democrats.

Move to Update Tax Code

Daines said in an X post that digital assets have gone “mainstream,” but the tax code hasn’t kept up.”

“My bill would create clearer rules for stablecoins, network fees, staking and lending—while extending familiar tax rules like wash sales and constructive sales to digital assets,” the legislator added.

Key Republicans Extend Support

The ADAPT Act exempts small gains or losses on GENIUS Act-regulated dollar-pegged stablecoins, exempts cryptocurrency transactions involving a fee of $10 or less and excludes income from “qualified” passive staking.

The bill also exempts digital asset lending from taxation, extends wash-sale rules to cryptocurrency and simplifies the tax treatment of charitable cryptocurrency donations.

Senate Banking Committee Chair Tim Scott (R-S.C.), Sen. Cynthia Lummis (R-Wyo.) and Sen. Bernie Moreno (R-Ohio) were listed as co-sponsors. Democrats have yet to support the bill, according to Politico.

Daines’ proposal comes after the failure of the CLARITY Act, which fell short of the 60 votes needed to advance in the Senate. Key Democratic negotiators who had spent months on the bill voted against it.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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