Applying Existing Tax Anti-Abuse Rules to Digital Assets Act
Sponsored By: Representative Arrington, Jodey C. [R-TX-19]
Introduced
Summary
This bill would apply existing tax anti‑abuse rules — especially wash sale and constructive sale rules — to most digital assets. It creates a new property class called "specified assets" and adds detailed digital‑asset definitions and exceptions to the tax code.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 0 benefits, 2 costs, 2 mixed.
Constructive-sale taxes on crypto
This bill would treat many offsetting crypto positions as taxable constructive sales. If you hold hedges or economically equivalent token positions, the bill could force you to recognize gain earlier than under current rules. Tokenized or wrapped assets would count as equivalent when they are economically the same. The constructive-sale changes would apply to constructive sales after the bill's introduction, and a separate "widely traded" test could exclude some assets.
New wash-sale rules for crypto
This bill would make most digital assets subject to the existing wash-sale rules. If you sell a crypto asset at a loss and quickly buy the same or a substantially identical token (including many tokenized or wrapped versions), that loss could be disallowed and your basis adjusted. Assets you receive from validating transactions (mining or staking rewards) would not count as purchases for wash-sale purposes. The wash-sale changes would apply to dispositions after the bill's introduction, but for sales before January 1, 2028 some broker-reported bases may be determined without the new rule.
Which crypto counts and when
This bill would add many new definitions for digital assets and tests for "widely traded" status. An asset would be "widely traded" only if it was quoted on an exchange all year, had market value over $500,000,000 for most of that year, and you (and related parties) did not own more than 10 percent. The $500,000,000 threshold would be indexed after 2027 and rounded to $100,000. The Treasury would be asked to publish a list of "qualified U.S. dollar stablecoins," but taxpayers or business units using a non-dollar functional currency could not treat those stablecoins as dollars for the bill's rules.
No legal-label guesses for crypto
This bill would say that its tax definitions do not create any inference about whether a digital asset is a security, commodity, debt, equity, partnership interest, or trust interest under other laws. It would also say the bill should not be read to change how tax rules applied for periods before the bill takes effect, except where the bill says so.
Sponsors & CoSponsors
Sponsor
Arrington, Jodey C. [R-TX-19]
TX • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov