Democrats in the Senate and House have moved to include expanded new crypto rules within the trillion-dollar spending and tax package.
According to the news of Politico, Richard Neal, chairman of the House Ways and Means Committee, stated that he wanted to take a series of measures for the $ 3.5 trillion spending package. Among these measures, there is also the “wash sale” rule for crypto-asset holders.
Wash sale is defined as “self-trading”. The parties enter an order at the same price and amount simultaneously, by agreeing before the transaction. This method is used for market fraud.
The document mentions the application of wash sale to cryptos.
Under US law, a taxpayer cannot offset losses resulting from a wash sale, which is defined as the purchase of securities of the same size within 30 days of selling a stock or security.
Cryptocurrencies are currently not subject to these rules. However, with the proposed new change, this may be possible.
Risk Disclosure: The articles and articles on Arover.net do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies.