Congress Targets Crypto’s Biggest Tax Loophole — and It Won’t Be Painless

[cryptoenthusiast]

A new bipartisan bill in the US Congress aims to bring crypto trading under the same tax rules as stocks — and that means the end of a lucrative loophole.

Introduced on December 20, the Digital Asset PARITY Act would apply wash sale and constructive sale rules to digital assets for the first time. Under the proposal, crypto traders would no longer be able to sell at a loss and immediately repurchase the same asset to lock in tax deductions. Instead, they’d need to wait 30 days, just like in traditional equity markets.

Lawmakers argue the change brings fairness and could raise billions in federal revenue, but for active traders, it would fundamentally alter how losses are managed during volatile market cycles.