What This Bill Does
H.R. 9172 would amend the Internal Revenue Code to apply existing anti-abuse tax rules to digital assets, including wash sale rules and constructive sale rules. It would generally treat most digital assets as “specified assets,” while excluding qualified U.S. dollar stablecoins in many cases. The bill also sets a $500 million market-cap threshold for “widely traded digital assets” and says the new wash-sale rules would apply to dispositions after the date of introduction, with a broker-reporting transition rule running through January 1, 2028.
- Applies wash-sale rules in section 1091 to “any digital asset other than a qualified U.S. dollar stablecoin.”
- Adds a 30-day wash-sale window for short sales and specified asset futures contracts.
- Defines “widely traded digital asset” using a $500,000,000 market-cap threshold and exchange quotations.
- Applies constructive-sale rules in section 1259 to digital assets other than qualified U.S. dollar stablecoins.
- Makes the wash-sale amendments apply to dispositions after the date of introduction, with a broker-reporting transition rule through January 1, 2028.
Who This Bill Affects
For a typical crypto holder or trader, this bill would make it harder to use quick sell-and-rebuy strategies to realize tax losses, because digital assets other than qualified U.S. dollar stablecoins would be brought under wash-sale rules. It would also expose certain digital-asset positions to constructive-sale treatment and could affect how brokers report basis before January 1, 2028. If you do not trade digital assets, the bill would have little direct effect on you.
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- Long-term crypto investors who want clearer tax rules They may support the bill because it puts digital assets under the same anti-abuse framework that already applies to stocks and securities. That can reduce perceived tax arbitrage and make the rules more consistent across asset classes.
- Tax administrators and compliance professionals They may argue the bill closes a gap that lets taxpayers harvest losses in crypto without the same restrictions that apply in traditional markets. The definitions for traded, widely traded, tokenized, and wrapped digital assets also give the IRS a framework for enforcement.
- Established financial firms offering digital-asset products Firms that already build tax reporting and compliance systems may favor clearer statutory rules, especially the $500 million widely traded threshold and the broker-reporting transition rule through January 1, 2028. Predictable rules can make product design and reporting easier.
- Active crypto traders and market participants who use tax-loss strategies They may oppose the bill because it would deny losses from rapid repurchases of digital assets, reducing a common portfolio-management tool. The new rules could also make trading more complex and less tax-efficient.
- Crypto miners and validators They may object to the need for a special exception for assets acquired in connection with validation of digital asset transactions, because it shows the bill reaches into validation-related activity. Even with the exception, they may worry about uncertainty over what counts as “supporting activities.”
- Projects using wrapped or tokenized assets They may be concerned that tokenized digital assets and wrapped digital assets are treated as substantially identical when economically equivalent, which can trigger wash-sale or constructive-sale consequences. That could complicate product design and secondary-market liquidity.
Key Implications
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““apply the wash sale rules and constructive sale rules to digital assets””
This is the core policy change: crypto transactions would no longer sit outside two major anti-abuse tax rules. For investors, that means some loss and gain-deferral strategies used in digital assets would be curtailed.
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““any digital asset other than a qualified U.S. dollar stablecoin””
Most digital assets are covered, but qualified U.S. dollar stablecoins are carved out in key places. That means the bill targets volatile or investment-type crypto more directly than dollar-pegged stablecoins.
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““market capitalization of such asset exceeded $500,000,000””
Only digital assets meeting the bill’s “widely traded” definition can trigger certain constructive-sale and related rules. The threshold is meant to focus the rule on larger, more liquid markets where price discovery is more reliable.
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““before January 1, 2028””
The broker-reporting transition rule gives the industry a runway before full basis reporting consequences apply in this area. In practice, that suggests a phased compliance period for brokers and taxpayers.
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““acquired in connection with the validation of digital asset transactions””
The bill excludes certain validation-related acquisitions from wash-sale treatment. That matters for miners, validators, and related participants whose receipt of digital assets is tied to network validation rather than ordinary trading.
Latest Status
June 8, 2026
Referred to the House Committee on Ways and Means.
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