The proposal targets the so-called "wash sale" rule, which prevents investors from selling stocks or other securities at a loss and immediately repurchasing them to claim a tax deduction. Cryptocurrencies are generally treated as property rather than securities under the U.S. tax code, leaving digital assets outside those restrictions, CNBC reported. Stock investors, by contrast, are generally barred from using the same strategy because of the wash sale rule. Those proposals have generated partisan debate, but tax experts told CNBC that applying wash sale rules to crypto has drawn support across party lines because it focuses on tax fairness rather than industry regulation. If approved, the legislation could significantly change year-end tax planning for cryptocurrency investors.