Jodey Arrington (R-TX)
Applying Existing Tax Anti-Abuse Rules to Digital Assets Act
A Republican bill with no cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill amends the Internal Revenue Code of 1986 to apply wash sale rules and constructive sale rules to digital assets. Under the bill, digital assets are generally included as "specified assets" for wash sale purposes, meaning losses from selling and quickly rebuying the same digital asset cannot be used to dodge taxes. The legislation creates specific exceptions, such as for qualified U.S. dollar stablecoins and digital assets acquired through transaction validation activities like mining or staking. It also establishes clear definitions for terms like digital assets, traded digital assets, and wrapped digital assets. Finally, the bill sets effective dates for these rules following the date of the Act's introduction.
Yes· 3 of 4
- Scored +2
Does this reduce what the federal government owes?
Applying wash sale and constructive sale rules to digital assets could modestly increase federal tax revenues by closing tax loophole strategies.
- Scored +1
Does this make the government pay for what it commits to?
Aligning tax treatment of digital assets with traditional securities promotes greater consistency in tax administration.
- Scored +1
Does this give the federal government more power?
The bill expands federal tax enforcement and reporting rules regarding digital assets.
The opposite· 3 of 6
- Scored -2
Would middle-income households be better off under this?
Everyday digital asset investors may experience increased tax compliance burdens and restrictions on loss harvesting.
- Scored -2
Would high-income households be better off under this?
High-income investors and traders face stricter rules on utilizing digital asset losses and constructive sales.
- Scored -2
Would people with substantial wealth be better off under this?
High net worth individuals holding significant crypto portfolios face tighter anti-abuse tax restrictions.
Who it would affect, and how
Potential Positive Impacts for People
-
Exemption for Validation Activities: Section 2(c) (adding Section 1091(h)) ensures that the acquisition of digital assets through transaction validation, which includes mining, staking, and supporting activities, is not taken into account under the wash sale rules. This protects individuals who earn digital assets through network participation from unfair tax burdens on those specific acquisitions.
-
Exemption for Stablecoins: Section 2(b) (adding Section 1091(g)(1)(B)) and Section 3(a) exclude qualified U.S. dollar stablecoins from the new wash sale and constructive sale restrictions. This is a positive outcome for everyday users and traders who rely on stablecoins for routine transactions without facing overly complicated tax penalties.
Potential Negative Impacts for People
-
Expansion of Wash Sale Restrictions: Section 2(a) and Section 2(b) (adding Section 1091) apply wash sale rules to digital assets. This means individuals can no longer claim tax losses if they sell a digital asset at a loss and buy a substantially identical digital asset within 30 days, placing a heavier tax tracking and financial burden on everyday crypto traders.
-
Application of Constructive Sale Rules: Section 3(a) and Section 3(c) apply constructive sale rules to digital assets and treat tokenized digital assets as substantially identical to economically equivalent financial property. This could negatively impact investors by restricting how they manage their portfolios and locking them into taxable events earlier than expected.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would billionaires be better off under this? — Billionaires investing in digital assets are subject to the same anti-abuse limitations as other taxpayers. Would high-income households be better off under this? — High-income investors and traders face stricter rules on utilizing digital asset losses and constructive sales. Would people with substantial wealth be better off under this? — High net worth individuals holding significant crypto portfolios face tighter anti-abuse tax restrictions. Would middle-income households be better off under this? — Everyday digital asset investors may experience increased tax compliance burdens and restrictions on loss harvesting. Would the very wealthiest people be better off under this? — Ultra high net worth individuals utilizing digital assets face limitations under expanded wash and constructive sale rules. Would business owners be better off under this? — Digital asset businesses and enterprises face new tax tracking and reporting requirements.
- Economy And Finance
- Does this reduce what the federal government owes? — Applying wash sale and constructive sale rules to digital assets could modestly increase federal tax revenues by closing tax loophole strategies. Does this make the government pay for what it commits to? — Aligning tax treatment of digital assets with traditional securities promotes greater consistency in tax administration.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The legislation provides clearer statutory definitions for digital asset taxation and reporting rules. Does this give the federal government more power? — The bill expands federal tax enforcement and reporting rules regarding digital assets.
- 6/8/2026
- Referred to the House Committee on Ways and Means.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.