Senate Republicans unveil 56-page crypto tax bill as House measure stalls

Key points

• Sen. Steve Daines (R-Mont.) formally introduced a 56-page bill to update the tax code for digital currencies, securing support from Senate Banking Chair Tim Scott (R-S.C.), Sen. Cynthia Lummis (R-Wyo.), and Sen. Bernie Moreno (R-Ohio).
• The proposal creates a tax exemption for small stablecoin purchases, imposes anti-abuse wash-sale rules, and allows mark-to-market treatment for dealers, mirroring provisions in the House-passed Digital Asset Tax Certainty Act.
• Unlike the bipartisan House measure, Daines’ bill has no Democratic support. Senate Finance Chair Mike Crapo (R-Idaho) expressed a desire to finalize crypto tax legislation before the end of the year, though no cost estimate is yet available.
• The Senate is expected to recess for midterm campaigns after Wednesday, with Majority Leader John Thune (R-S.D.) noting that passing complex tax changes before the November 3 elections is difficult due to attendance issues and political polarization.

Background

In September 2026, the House Ways and Means Committee advanced a bipartisan crypto tax overhaul (H.R. 10357) with a 38-5 vote. This bill included provisions for stablecoin treatment, staking income classification, and a voluntary disclosure program. The current Senate action represents a parallel effort to address these issues, though it faces a more partisan environment.

How outlets are covering it

Politico emphasizes the partisan divide, noting that Daines’ bill lacks Democratic support and may struggle to pass before the midterms. Punchbowl News highlights the momentum behind the legislation, citing Senate Finance Chair Mike Crapo’s goal to complete the work before year-end. RSM provides a technical analysis of the bill’s implications, detailing how it aligns digital asset taxation with traditional securities rules, including specific treatments for wash sales, mark-to-market elections, and stablecoin basis calculations. While Politico focuses on the political hurdles, RSM details the compliance and planning considerations for businesses, and Punchbowl notes the legislative urgency.

Why it matters

The bill’s passage would significantly alter how Americans and businesses are taxed on cryptocurrency transactions, potentially reducing compliance burdens for stablecoin users and providing clearer rules for staking and mining income. However, the lack of bipartisan support in the Senate and the upcoming midterm recess create significant uncertainty regarding the timeline and final shape of the legislation.

What to watch

Lawmakers will monitor whether the Senate can advance the bill before the November 3 midterm elections. Senate Finance Committee members are expected to continue working on bipartisan changes behind the scenes, while the House may attempt to move its version of the crypto tax changes during a potential lame-duck session.