Also, since crypto gains are considered capital gains, then any capital losses you have been accumulating can now be used vs your capital gains. The problem he

Also, since crypto gains are considered capital gains, then any capital losses you have been accumulating can now be used vs your capital gains. The problem here is.. how the heck can the IRS verify your claim that some gains were capital gains? What if you sell drugs for a living and invest poorly in the stock market. You just send your drug sales gains in as crypto gains, and so you have effectively washed your illegal gains, giving you the benefit of being able to not pay tax on that bc of your capital losses. This system is ripe for abuse.