Bill extends wash sale and constructive sale tax rules to cryptocurrency
In committeeH.R. 9172Latest action
Sponsor: Jodey C. Arrington · Representative · TX
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Official title: Applying Existing Tax Anti-Abuse Rules to Digital Assets Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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HR 9172 would apply existing stock tax rules to crypto, closing a loophole used to claim losses and defer gains.
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What does this do?
HR 9172 extends two existing tax rules — the wash sale rule and the constructive sale rule — to digital assets like Bitcoin and Ethereum. The wash sale rule blocks investors from selling an asset at a loss for a and immediately repurchasing it. The constructive sale rule prevents investors from using financial maneuvers like short selling to lock in gains without triggering a tax obligation.
Who does it affect?
The bill most directly affects people who actively trade cryptocurrencies, particularly those who use losses to lower their tax bills at year's end. Crypto exchanges and brokers are also affected and must update transaction tracking and reporting systems by 2028.
Why does it matter?
Applying these rules to digital assets would close a gap that currently lets crypto investors use strategies that are already prohibited for stock and bond investors. Miners and stakers are exempt from the wash sale portion but may still be subject to constructive sale rules in some situations.
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Where does it stand?
- IntroducedJun 8, 2026
- House committeeYou are here · Jun 8, 2026
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the House Committee on Ways and Means.
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