Does Catherine Cortez Masto Support Crypto?

Senator Cortez Masto recently signaled strong support for bipartisan efforts to establish tax certainty for digital assets, specifically praising Chairman Jason Smith's Digital Asset Tax Certainty Act in the House and Senator Steve Daines' ADAPT Act in the Senate. This stance earns a 75 out of 100 (Somewhat Pro-Crypto). To understand why this is a highly positive signal, we have to look at the substance of these bills and our framework's crucial distinction between enabling regulatory clarity and standard compliance. For years, the crypto industry has been severely hindered by an outdated tax code. Currently, spending a dollar-pegged stablecoin on everyday goods or paying a minor gas fee on a decentralized network triggers a taxable event that must be meticulously tracked and reported. This friction stifles mainstream adoption. The legislation Cortez Masto is supporting directly solves this by creating a de minimis exemption for network fees under ten dollars and exempting everyday purchases made with regulated stablecoins from capital gains reporting. Stablecoins are a massive net positive for global financial access. Removing arbitrary tax barriers to their everyday use is a tremendous win for the industry. This is what true, enabling regulatory clarity looks like: it removes ambiguity, protects ordinary users, and allows the technology to function practically and lawfully. So why did this score a 75 instead of a 100? Because the legislation also folds in standard compliance measures—most notably, extending traditional wash-sale rules to digital assets to close tax loopholes. While standard oversight is not inherently pro-crypto advocacy, pairing it with massive tax friction relief for users makes the overall legislative package modestly expansive for legitimate crypto activity. It is highly encouraging to see Senator Cortez Masto advocating for sensible rules of the road rather than punitive restrictions. Providing tax certainty ensures that everyday builders and users aren't paralyzed by regulatory risk, paving the way for continued innovation in the United States.

Senator Cortez Masto recently issued a statement explaining her position on the CLARITY Act. Interestingly, the text of this statement receives a top-tier pro-crypto stance score of 100. Let’s break down why this rhetoric scores so highly, and where the critical nuance lies regarding her actual voting record. Under our evaluation framework, calling for a "clear regulatory framework" or "rules of the road" is a strong pro-crypto signal. The industry desperately needs to be freed from arbitrary regulation-by-enforcement. The Senator hits all the right rhetorical notes here: she explicitly advocates for giving millions of U.S. users regulatory certainty and makes a crucial distinction between targeting bad actors and protecting "everyday coders." Acknowledging that developers building decentralized tech are not criminals is exactly the kind of nuanced language we want to see from lawmakers. However, as a measured observer of the space, I have to contrast her excellent rhetoric with her actual legislative action. Yesterday, she ultimately voted against the Digital Asset Market Clarity Act of 2025 (the CLARITY Act). This landmark bill was designed to differentiate digital commodities from securities, grant the CFTC exclusive jurisdiction over spot markets, and permanently protect an individual's fundamental right to self-custody their digital assets. The Senator justified her opposition by claiming the current version of the bill undermines law enforcement's ability to trace illicit finance. While stopping fraud and prosecuting criminals are necessary parts of a mature market, we have to be extremely careful. Often, what lawmakers call "commonsense fixes" for law enforcement mutate into broad surveillance mandates or reporting requirements that compromise user privacy and effectively outlaw self-custodial wallets. It is incredibly encouraging to see Senator Cortez Masto adopt such strong pro-crypto messaging. Her public acknowledgment that the industry needs certainty and that developers must be protected shows that the crypto community's educational advocacy is working. But true regulatory clarity means passing bills that establish fair market structures without saddling the technology with impossible surveillance burdens. We hope to see her pro-innovation rhetoric eventually translate into "yea" votes for bills that protect both everyday users and the foundational rights of the ecosystem.