US Lawmakers Push to Close Crypto Tax Loophole by Expanding Wash-Sale Rules

Legislators seek to apply wash-sale rules to crypto, closing a loophole allowing Bitcoin holders to harvest tax losses without altering positions.

Woofun AI reports that U.S. lawmakers are advocating for the inclusion of crypto assets in traditional wash-sale regulations to eliminate an existing tax loophole. Currently, securities investors cannot claim capital loss deductions if they repurchase identical assets within 30 days of a sale, whereas crypto assets like Bitcoin are classified as property and exempt from these restrictions, enabling tax-loss harvesting without position changes.