The ADAPT Act establishes a comprehensive tax framework for digital assets and cryptocurrency activities. The legislation allows digital asset traders and dealers to elect mark-to-market accounting, which lets them value holdings at current market prices annually rather than only recognizing gains when sold. The bill extends tax-deferral rules to digital asset transfers, applies constructive sale rules to prevent tax avoidance strategies involving cryptocurrency, and adds detailed definitions of key terms like mining, staking, and widely-traded digital assets to the tax code. Additionally, the legislation directs the Treasury Department to issue guidance within 12 months on how foreign decentralized autonomous organizations (DAOs) can reorganize into domestic U.S. corporations, with incentives for those established before September 2026 to complete reorganizations promptly. These provisions take effect upon enactment and affect digital asset traders, cryptocurrency dealers, and foreign entities involved in DAO activities.