Dems press Treasury, IRS to crackdown on crypto wash trading

June 15, 2023

After Republicans successfully blocked a tax-loss harvesting clause aimed at the crypto industry tucked into the recently-passed debt ceiling bill, Democrats are still pushing the issue. The provision aimed to put a stop to wash trading in crypto. Wash trading is illegal when it comes to securities, but the IRS doesn’t treat crypto as a security. It’s not as simple as outlawing wash trading in crypto, though, Wilks said. Imposing a reporting rule for crypto wash trades wouldn’t result in significant tax revenue unless crypto brokers are held to this same standard,” Wilks said.

The source of this news is from TaxBit