Senate Bill Proposes Tax Exemption for Small Stablecoin Purchases and Closes Wash Sales

Montana Senator Steve Daines has introduced a 56-page cryptocurrency tax bill designed to establish a de minimis exemption for small stablecoin transactions. Backed by Senators Tim Scott, Cynthia Lummis, and Bernie Moreno, the legislation also aims to prevent Bitcoin and XRP investors from claiming tax losses when selling and quickly repurchasing tokens.

Under current Internal Revenue Service rules, cryptocurrencies are treated as property, making any purchase of goods a taxable event if the asset's value fluctuated before spending. While the specific dollar threshold for the Senate's proposed exemption has not been detailed, the measure targets everyday payment frictions across a stablecoin market where Tether and USDC collectively represent nearly $260 billion in value.

The initiative follows a separate bill, the Digital Asset Tax Certainty Act (H.R. 10357), advanced by the House Ways and Means Committee under Chair Jason Smith. The House measure, which passed out of committee by a 38–5 vote, offers a $10 exemption focused on network fees starting in 2028, excludes individuals conducting over 5,000 transfers annually, and treats stablecoin redemption values at or near $1 as cost basis while taxing staking and mining rewards as ordinary income.