Overview
Bloomberg quoted Lisa Zarlenga in a November 5 article in titled "Crypto Traders Have Short Window to Avoid House Anti-Abuse Plan." The article discusses the impact of House Democrats' proposed tax-and-spend package that would subject digital assets to two anti-abuse rules that already apply to stocks and others securities.
"There is an increased risk that wash sales rules will be triggered unintentionally by trades of "gateway" coins, like Bitcoin or Ethereum, that are bought and sold much more frequently than others," Zarlenga says.
Certain questions would need to be answered by Treasury guidance. "It isn't clear in the legislation how "substantially identical" will be defined under the wash sale rules. Some may assume an investor would have to buy and sell the same cryptocurrency, such as Bitcoin, but it is possible the definition could be broader," Zarlenga adds.
The full article can be read on Bloomberg.com.
