Bipartisan Bill Targets Crypto Tax Loophole, Offers Relief to Stablecoin Industry

A long-standing tax disparity between cryptocurrency investors and traditional stock traders may soon be addressed by a bipartisan bill in Washington.

The Digital Asset PARITY Act proposes an overhaul of how digital currencies are taxed, aiming to eliminate a lucrative loophole for Bitcoin traders while providing regulatory relief to the stablecoin industry.

At its core, the proposal seeks to close the 'wash sale' gap by rewriting the Federal tax code to prohibit the practice of selling a losing asset for a tax deduction and immediately buying it back. This tactic has allowed savvy traders to exploit a loophole that traditional stock investors are barred from using.