Tax loophole may be closed as U.S. lawmakers push to include crypto assets in wash-sale rules

Odaily reports that some U.S. lawmakers are pushing to include crypto assets in traditional wash-sale rules to eliminate a long-standing tax loophole. Under current rules, investors in securities like stocks cannot claim capital losses for tax deductions if they repurchase the same or substantially identical assets within 30 days before or after a sale at a loss. However, crypto assets such as Bitcoin and Ethereum are treated as property under tax law and are not subject to these restrictions, allowing investors to realize tax-loss harvesting without changing their holdings.