U.S. Senator Steve Daines (Republican from Montana and member of the Senate Finance Committee) has officially introduced a 56-page digital asset tax legislation known as the 'Aligning Digital Assets with Tax Principles Act' (ADAPT Act). The bill aims to establish clearer tax rules for stablecoin payments, network fees, staking, and lending scenarios, and plans to extend existing tax rules such as wash sales and deemed sales to digital assets. The core provisions of the bill stipulate that taxpayers using compliant U.S. dollar stablecoins to purchase goods and services generally do not need to recognize gains or losses, while exempting qualifying consumer transactions from broker reporting obligations; however, this exemption does not apply to traders and market makers. The bill also extends wash sale rules and deemed sale rules to digital assets, excluding compliant stablecoins from deemed sale provisions to limit loss harvesting behavior in crypto assets. Additionally, the legislation proposes to exempt the recognition of gains and losses for digital assets used to pay network, transaction, or gas fees of $10 or less, and allows qualifying digital asset traders and dealers to choose fair market value accounting. The bill also addresses rules for income sources from staking and mining, a non-recognition framework for digital asset lending, a safe harbor for foreign investor transactions, and definitions for digital asset classifications. Most provisions will apply to tax years or transactions occurring after December 31, 2026. Previously, the U.S. House Ways and Means Committee passed its own 'Digital Asset Tax Certainty Act' on September 16 with a vote of 38 to 5.