Crypto wash sale rule: does it apply to your 2026 sales?

No crypto wash sale rule is law today. A House bill, H.R. 10357, would apply one to coins sold after September 14, 2026. Here is what that means for you.

Vishant Mehta, CPA, Ex-Big 4

Published October 19, 2026

crypto tax
wash sale
H.R. 10357
tax-loss harvesting

No law applies the wash sale rule to crypto today. The rule, section 1091 of the tax code, covers stock and securities, and the IRS treats crypto as property. Selling a coin at a loss and buying it back does not trigger it.

That could change, even for sales already made. H.R. 10357, the Digital Asset Tax Certainty Act, would apply a crypto wash sale rule to coins sold after September 14, 2026. The House Ways and Means Committee approved it 38 to 5 on September 16, 2026. It is not law.

Today's rule	Section 1091 covers stock and securities, not crypto
The bill	H.R. 10357, the Digital Asset Tax Certainty Act
Would cover	Crypto sold at a loss after September 14, 2026
Buyback window	30 days before or after the sale
Status on October 19, 2026	Not law, with no House or Senate floor vote yet

Does the wash sale rule apply to crypto?

Not under current law. The wash sale rule disallows a loss on stock or securities when you buy substantially identical ones within 30 days either side. It does not name crypto. In September 2026, the Joint Committee on Taxation (JCT) noted that the IRS has issued no guidance applying it to crypto.

How would the bill's crypto wash sale rule work?

As the committee approved it, the bill would rewrite section 1091 in seven ways that matter to crypto holders.

Which coins. It would cover fungible coins with prices readily available on an exchange, unless the Treasury excludes them. NFTs, which are not fungible, and qualifying US dollar stablecoins would be left out.
The window. A buyback within 30 days before or after a loss sale would make it a wash sale. That is 61 days in all.
What counts as a buyback. Buying the same coin would count. So would a contract or option to buy it, or a wrapped version that is economically equivalent to it.
What does not count. Coins received from staking or mining would not count. Nor would coins from a regular series of acquisitions you report as ordinary income.
Where the loss goes. The disallowed loss would be added to the cost of the coin you bought back. You would claim it when you sell that coin.
The start date. It would apply to sales after September 14, 2026, even if Congress passes it in 2027.
Your forms. For sales before 2028, brokers could report your cost without the new rule. Form 1099-DA may not flag a crypto wash sale, so you would track it yourself.

Is it a wash sale if I sell my XRP and immediately buy it back?

Not today. Selling XRP at a loss and buying it right back is not a wash sale under current law. If H.R. 10357 becomes law as approved, the same trade after September 14, 2026 likely would be. XRP is fungible and quoted on exchanges, the bill's main tests.

Say you paid $10,000 for XRP now worth $6,000. You sell it and buy it back the next day at the same price.

Under current law. You can claim the $4,000 loss on your 2026 return. Your new XRP has a cost of $6,000.
Under the bill. The $4,000 loss would be disallowed for now. Your new XRP would have a cost of $10,000, so the loss comes back when you sell it.

Will the wash sale rule apply to crypto in the US in 2026?

Only if Congress passes a bill that says so. H.R. 10357 would reach back to sales after September 14, 2026, even if it passes in 2027. It still needs House and Senate votes and the President's signature.

A Senate bill, S. 2207, would also apply the rule to crypto, from 2026 tax years. It has had no recorded action since its referral to the Senate Finance Committee on June 30, 2025.

Is a wash sale good or bad?

A wash sale mostly costs you time: it delays a loss rather than erasing it. That hurts when you need the loss this year to offset a gain.

Today, selling crypto at a loss and rebuying lets you use the loss now. Your new cost is lower, though, so a later sale shows a larger gain. Losses offset capital gains first, then up to $3,000 of other income a year ($1,500 if married filing separately). The rest becomes a capital loss carryover.

Which dates matter for a loss sale this year?

The bill's start date has passed, and the year-end deadline is close.

Date	What happens
September 14, 2026	The bill's rule would cover sales after this date
September 16, 2026	Ways and Means approves the bill, 38 to 5
December 31, 2026	Last day for a loss sale to count in 2026
January 31, 2027	First buyback day outside the window for a December 31 sale
April 15, 2027	2026 returns are due
January 1, 2028	Broker relief for crypto wash sales would end

What should you do now?

Work from current law. Today, the wash sale rule does not apply to crypto.
To keep a loss safe either way, wait 31 days to buy the same coin back, or buy a different coin. Under the bill, an economically equivalent wrapped version would count as the same coin.
Pause recurring buys of any coin you sell at a loss. Under the bill, an automatic purchase within 30 days either side would count.
Keep your own record of each loss sale and any buyback.
Selling to a parent, child or sibling does not help. A loss on that sale is not deductible under a separate rule, section 267.
Check this page before you file. We update it at each step the bill takes.

For how crypto is taxed today, see our crypto tax guide and CPA service. For the rest of the bill, see the crypto tax bill explained.