Crypto Wash Sale Loophole Closure Could Yield $24B in Revenue

Legislation to apply wash sale rules to digital assets aims to generate $24B over a decade, though short-term passage remains unlikely despite bipartisan interest.

Woofun AI reports that Republican lawmaker Jodey Arrington introduced the "Applying Existing Tax Anti-Abuse Rules to Digital Assets Act" in June. The proposal seeks to extend existing "wash sale" tax provisions to cover digital assets. Treasury estimates indicate that closing this specific loophole could generate nearly $24 billion in additional revenue over a ten-year period. While experts view this as a potential avenue for cross-party cooperation on tax reform, the probability of the legislation passing in the near term is assessed as low.