ADAPT Act: Aligning Digital Assets with Principles of Taxation Act

Summary: The ADAPT Act is proposed U.S. Senate legislation to update federal tax rules for digital assets. Intended for policymakers, tax professionals, financial regulators, and digital asset businesses, the 56-page bill would amend the Internal Revenue Code and establish a $10 threshold for certain digital asset transaction fees.

The bill outlines proposed changes to stablecoin transactions, mark-to-market elections, income from mining and staking, wash sale rules, investment trusts, and charitable donations. Readers will learn how the legislation would affect tax reporting, qualifying digital asset transactions, and the treatment of decentralized autonomous organizations. The document also defines key digital asset terms and specifies proposed effective dates for different provisions.