What Impact Does the Lack of Wash Sale Rules Have on Active Crypto Traders?

The absence of explicit wash sale rules for crypto in past tax years provided active traders with a significant advantage. They could sell a crypto asset at a loss to realize a tax deduction and immediately repurchase the same asset to maintain their market position, a practice known as "super-harvesting." This allowed them to manage tax liabilities without altering their long-term investment strategy, though this is changing with new legislation.