The document says it wants to close the “loophole that benefits wealthy crypto investors” by focusing on wash sales of digital assets. Investors currently aren’t able to create an investment loss for a tax deduction while still having a position in a security. But up to now, this rule has not applied to crypto assets, which has enabled crypto investors to employ tax loss harvesting strategies that are not available to traditional investors. The Biden Administration appears now to be playing catch up as regulators put digital assets in the same basket as securities and want to change the rule so it applies to digital assets like Bitcoin. But it’s certain that the government is paying closer attention to digital assets—and wants to regulate them like other investments.