Besides the Clarity Act, the White House’s 2026 budget proposal targets the wash sale loophole that lets crypto traders harvest losses and immediately rebuy. It’s an illegal practice for stock investors, but entirely legal under current digital asset rules.

The proposal would apply wash sale rules to crypto for the first time, treating digital assets the same as traditional securities for tax purposes. It also includes a 30% excise tax on electricity used for crypto mining via the DAME (Digital Asset Mining Energy) tax, and a FATCA reporting requirement for U.S. taxpayers holding more than $50,000 in foreign crypto accounts.

Key Takeaways

• White House Budget 2026 proposes applying wash sale rules to crypto, closing a…