Republican bill would end crypto wash sale tax loophole

According to CNBC, some congressional lawmakers are pushing to close a tax loophole that lets cryptocurrency investors claim losses without triggering wash sale rules, with Rep. Jodey Arrington, R-Texas, introducing legislation in June to subject digital assets to the same restrictions that apply to stocks and other securities. The Treasury Department estimated in 2024 that applying wash sale rules to digital assets would raise nearly $24 billion over a decade. Supporters of the proposal include Rep. Ron Estes, R-Kansas, who said extending the rules to digital assets would provide consistency and clarity for investors and traders. Experts said the effort has bipartisan interest, but it is unlikely to pass in the coming months as Congress approaches the midterm elections.