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In addition to the Clarity Act, the proposal is looking… budget The White House 2026 “wash sale” tip allows crypto traders to take tax losses and buy them back immediately. This practice is illegal for stockholders, but is legal under current digital asset laws.
The proposal would apply cleanup rules to crypto for the first time, treating digital assets like traditional securities for tax purposes. It also includes a 30% tax on electricity used in crypto mining through the DAME (Digital Asset Mining Energy) tax, and FATCA reporting requirements for US taxpayers with more than $50,000 in foreign crypto accounts.
Important points
- The White House’s 2026 budget plans to use crypto-washing rules to close the loophole for stockbrokers.
- The Treasury estimates that the reform will generate $5.4 billion over 10 years.
- A mining tax of 30% on the price of electricity directly targets Proof of Work (PoW) projects.
- Expanding FATCA reporting to include foreign crypto accounts over $50,000.
- The proposal faces a difficult legislative path in Congress that is moving toward pro-crypto legislation.
What does the Wash Sale Act do?
Under current law, the resale rule prevents investors from claiming a tax loss if they repurchase the same security or exactly the same security within 30 days. Since crypto is classified as an asset and not a security, this rule does not currently apply.
Traders have aggressively taken advantage of this gap, selling their Bitcoin holdings without locking in the tax deduction, and then buying them back to save their money. This is known as “tax harvesting,” and it was legally binding for crypto holders.
The White House proposal closes this gap; If it passes, the crypto will be subject to the same 30-day ban imposed on stocks.
Does this proposal have a concrete path in Congress?
The political debate here is swift; The same White House that is pushing the CLARITY Act as a way to help regulate crypto is also proposing stricter tax laws. The White House does not see this as a contradiction, and instead puts the crypto tax plan as a form of cooperation rather than punishment, but the results on Capitol Hill seem different.
Congress is currently moving toward crypto-friendly legislation. The debate has taken place Clarity Act in the Senate Banking Committee There is a growing legislative effort, and this tax campaign is against that.
At the same time, the Securities and Exchange Commission (SEC) is considering major regulatory proposals, including… The 85th regulation change affects the listing of Bitcoin and XRP ETFswhich causes the crypto process to pull multiple processes at once.
To put things in perspective, similar proposals for consumer protection laws were put forward during the Obama and Biden administrations and never made it through the halls of Congress.
A note White House 2026 Budget Targets Crypto Tax Loopholes appeared for the first time Cryptonews Arabic.
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