The Proposed ADAPT Act: Digital-Asset Tax Scenarios, Not Enacted Law
S.5616, introduced September 30, 2026, proposes digital-asset tax changes. It has not been enacted; scenario modelling must remain separate from measurements under enacted law.
Editorial source review — November 1, 2026. This machine-generated article has been reviewed, but is not certified accurate. Source-backed corrections are incorporated where established. Other legal, survey and product claims may remain unverified; check applicable primary authorities before relying on a deadline or tax position.
Findings in the original version: Congress confirms introduction on September 30, not enactment. Present-tense wash-sale, DTA impairment and imminent-enactment assertions contradict the article's own acknowledgement that this is a bill.
Senator Steve Daines introduced S.5616, the ADAPT Act, on September 30, 2026. The congressional record identifies an introduced bill referred to the Senate Finance Committee, not an enacted statute. Its proposed changes must not be described as wash-sale rules that “now apply”.
What the proposal covers
The bill proposes amendments concerning digital assets, including mark-to-market treatment, wash-sale provisions and income sourcing. Scope, elections and proposed effective dates must be read provision by provision. Introduction does not establish passage, final wording or a common January 2027 effective date for every provision.
Separate enacted-law accounting from scenarios
Model possible effects if relevant to the company's holdings, but label those calculations as scenarios. Do not impair a deferred tax asset or record a new current-tax liability solely because an introduced bill would disallow a loss if enacted. Apply the relevant enacted law and accounting requirements to the actual facts and reporting period.
A claim that the proposal “will be law within the next quarter” is not established by the congressional record. Monitor legislative action rather than assuming its outcome.
Other digital-asset questions remain separate
Staking income, asset classification, holding structure and international inclusions require their own current-law analysis. A new digital-asset proposal does not replace the separate section 951A and section 250 framework or establish a flat 10.5% rate for all foreign digital-asset income.
Practical controls
- Inventory assets, transactions, tax basis and existing accounting positions.
- Keep bill scenarios separate from booked enacted-law calculations.
- Record the specific clause and proposed effective date used in each scenario.
- Reassess only when an actual legislative event or applicable guidance warrants it.