Does the wash rule apply to Cryptocurrency?

The wash-sale rule was designed to discourage people from selling securities at a loss simply to claim a tax benefit. A wash sale occurs when you sell a security at a loss and then purchase that same security or “substantially identical”

The IRS specifically states that wash sale rules only apply to securities. Cryptocurrencies are property, not securities, as defined by IRS guidance. This means that as of now, wash sales rules do not apply to cryptocurrencies—however, t

Since cryptocurrencies are treated as property per IRS Notice 2014-21, they are not subject to the wash sale rule. Let's see how the wash sale rule works with stocks and cryptocurrencies next.Sep 13, 2021

Currently, the wash sale rule only applies to stock and securities, not to cryptocurrency. Buy substantially identical stock or securities, Acquire substantially identical stock or securities in a fully taxable trade, Acquire a contract