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Is the Wash Sale Rule Applicable to Crypto-to-Crypto Trades?

The IRS has not issued explicit guidance on whether the wash sale rule applies to crypto-to-crypto trades. Since crypto is classified as property, not a security, the rule technically does not apply.

However, a legislative proposal aims to extend the rule to digital assets. Traders currently operate in a gray area, but the rule is generally not applied.

How Does the Mark-to-Market Rule Interact with the Wash Sale Rule?
What Is the Wash Sale Rule and How Does It Apply to Options Trading?
Does the Wash Sale Rule Apply to Crypto Derivatives?
Can the Wash Sale Rule Be Triggered by Trading Different Strike Prices of the Same Option?