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Congress renews push to end crypto wash sale tax loophole

Congress renews push to end crypto wash sale tax loophole

The U.S. Capitol in Washington, July 22, 2026.

Aaron Schwartz | Bloomberg | Getty Images

Some Congressional lawmakers are pushing to get rid of a lucrative tax loophole for cryptocurrency investors estimated to be worth billions of dollars per year. It’s a potentially rare area of bipartisan agreement when it comes to tax and crypto issues, experts said.

The tax code allows investors in digital assets like bitcoin and ether to claim a tax benefit for an investment loss, just they do for stocks and other traditional assets.

However, unlike stocks, crypto isn’t subject to so-called wash sale rules.

In practice, that means crypto investors can essentially claim the tax break associated with an investment loss without divesting the holding…

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