Senate Republicans have formally introduced a crypto tax bill targeting taxation of digital assets, signaling a shift toward tax policy after a failed procedural vote on broader market-structure legislation. Key figures shaping the proposal include Cynthia Lummis and Sen. Steve Daines. The draft emphasizes defined tax treatments such as a de minimis exemption, rules for staking and mining income, and extending wash-sale rules to many digital assets, while carving out qualified stablecoins.
Sen. Daines circulated a 13-section draft that would create a new IRC §1034 providing nonrecognition of gains or losses for qualifying near-$1 stablecoin payments, effective for transactions after December 31, 2026. The draft also proposes a de minimis exemption for network fees of $10 or less per transaction and would extend wash-sale restrictions to most digital assets, excluding certain qualified stablecoins. Additional technical provisions include mark-to-market elections, source rules for staking and mining income, and safe harbors for foreign investors.
The House Ways and Means Committee already advanced the Digital Asset Tax Certainty Act, H.R. 10357, and the Senate draft appears designed to align with that effort. Observers will watch for the formal Senate introduction, cosponsors, any divergence from H.R. 10357 on stablecoin definitions or wash-sale scope, and leadership signals about timing of a vote; Senate Finance Chair Mike Crapo has indicated a desire to finalize crypto tax legislation by year-end.