Close Crypto Tax Loophole to Raise Revenue, Senators Say

Legislation that would overhaul how the cryptocurrency industry is regulated will also close a tax loophole that could generate billions in revenue, according to a senator sponsoring the bill.

Sen. Cynthia Lummis (R-Wyo.) is set to reintroduce her crypto bill from last year with a new provision closing the “wash sale” loophole, which allows crypto investors to claim losses by quickly selling and repurchasing their digital assets. Crypto assets would then be subject to the IRS rules that prohibit such wash selling. Because crypto isn’t generally treated as a security, the rule doesn’t now apply.

The Securities and Exchange Commission ...