Congress Targets Crypto Tax Loophole Worth $23.5 Billion

Rep. Jodey Arrington has introduced H.R. 9172, a bill aimed at closing the wash sale loophole in cryptocurrency tax laws.

The proposed legislation would extend the Internal Revenue Code's wash sale rules to cover digital assets, mirroring how stocks and other traditional financial instruments are treated.

This means that if a trader sells Bitcoin at a loss and buys it back within 30 days, they will no longer be able to claim the loss on their taxes.

The bill is expected to raise around $23.5 billion in revenue over the next decade, as estimated by prior Treasury Department estimates.