A Senate Bill Would Make Small Stablecoin Purchases Tax-Free and Close Crypto's Wash-Sale Loophole. What Changes for Bitcoin and XRP Holders? - 24/7 Wall St.

A new Senate bill proposes two notable changes to how digital assets are taxed. First, it would exempt small stablecoin purchases from capital gains tax, meaning everyday transactions using stablecoins below a set threshold would no longer trigger a taxable event. Second, it would close the wash-sale loophole for crypto — a rule that currently prevents investors from claiming a loss on a security they repurchase within 30 days, but which does not yet apply to digital assets.

For Bitcoin and XRP holders, the implications differ. The stablecoin provision is mostly about usability, aiming to make stablecoins function more like cash for routine payments. The wash-sale change is more directly relevant to active traders, since it would limit a strategy of selling at a loss and quickly buying back to lock in a tax benefit.

The bill is a proposal, not law. What to watch: whether it advances through committee, how the small-purchase threshold is defined, and whether the wash-sale rule is extended to all digital assets.