Dems press Treasury, IRS to crackdown on crypto wash trading

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.