Why could cryptocurrency investors lose a tax-loss harvesting advantage under H.R. 9172?

Cryptocurrency investors could lose a tax-loss harvesting advantage because H.R. 9172 would apply wash sale rules to many digital assets. Under the proposal, investors could not claim certain losses if they repurchase substantially identical digital assets within 30 days before or after a sale.

What does H.R. 9172 mean for Bitcoin (CRYPTO) and other digital assets?

Bitcoin (CRYPTO) and many other digital assets would be classified as "specified assets" under H.R. 9172. This would subject Bitcoin (CRYPTO) transactions to anti-abuse tax rules that already apply to stocks and securities.

How is Bitcoin (CRYPTO) affected by the proposed wash sale rules?

Bitcoin (CRYPTO) investors could have losses disallowed if they sell Bitcoin (CRYPTO) and re-establish a substantially identical position within the 30-day wash sale window. The proposal would align crypto tax treatment more closely with traditional financial assets.

What are the exemptions under the H.R. 9172 crypto tax proposal?

Qualified U.S. dollar stablecoins and certain digital assets acquired through staking, mining and validation activities would be exempt from some provisions of H.R. 9172. The bill specifically excludes qualified U.S. dollar stablecoins from its expanded wash sale definition.

What does the constructive sale proposal mean for widely traded digital assets?

Widely traded digital assets, including Bitcoin (CRYPTO) if they meet the criteria, could become subject to constructive sale rules under H.R. 9172. The proposal generally applies to digital assets with market values above US$500 million and certain ownership limitations.

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House bill targets crypto tax loopholes

Written by Isaac FrancisPublished Jun 18, 2026, 2:41 AM

A new House proposal would apply wash sale and constructive sale tax rules to many digital assets.
The changes could limit crypto investors' ability to claim tax losses after quickly repurchasing assets.
The bill would exempt qualified U.S. dollar stablecoins and certain assets acquired through staking, mining and validation activities.

A bill introduced in the U.S. House of Representatives would extend existing wash sale and constructive sale tax rules to many digital assets, potentially reducing a tax-loss harvesting advantage currently available to cryptocurrency investors.

The proposal, H.R. 9172, was highlighted by House Budget Committee Chairman Jodey Arrington and would place many digital assets under the same anti-abuse tax framework that already applies to stocks and securities.

“America should lead the world in digital asset innovation, but that innovation shouldn’t come with preferential treatment in the tax code,” said House Budget Committee Chairman Jodey Arrington.

The legislation would replace the term "stock or securities" with "specified assets" in wash sale rules, creating a category that includes digital assets while excluding qualified U.S. dollar stablecoins, and would generally deny losses when investors repurchase substantially identical assets within 30 days before or after a sale.

If enacted, the bill would change how existing tax rules apply to digital assets rather than introducing a new crypto tax rate, and there was no direct market reaction because the proposal remains under congressional review.

The proposal also contains exemptions for digital assets acquired through staking, mining and similar validation activities, while tokenised and wrapped assets could be treated as substantially identical to economically equivalent securities or digital assets.

In addition, the bill would extend constructive sale rules to widely traded digital assets with market values above US$500 million, subject to ownership thresholds, as lawmakers seek to apply existing anti-abuse measures more broadly across digital asset markets.