The brief item indicates the White House is seeking to address a tax rule gap that has allowed some crypto investors to sell and quickly rebuy digital assets for tax purposes.
The White House is targeting what the source describes as a crypto wash sale loophole in its budget. The item points to a tax-related policy effort focused on digital assets, where a wash sale (selling an asset at a loss and repurchasing it quickly) can be used to realize tax losses while maintaining market exposure. In traditional securities markets, wash sale rules generally limit that practice, and applying similar treatment to crypto would represent a tighter tax approach toward digital asset trading.