What with traders that are not American citizen and are taxed in their own country because of a double tax treaty?
If an investor purchases the same or a substantially identical security within the 61-day time frame, the IRS effectively ignores the transaction, and the amount of loss is added to the cost of the replacement security. It defers the loss until a future time when the replacement security is sold. The 61-day holding period also applies to the replacement security. The “substantially identical security” is also referred to as the “replacement security” for the original security. My opinion: You can buy or sell, so it is not forbidden. Only the taxation goes in another way. As a non American the IRS is even not interested in me. So the wash sale rule does not apply to me as I am not taxable in the US.
Read the proposed updates at the link I posted. The loss can be entirely lost now and is deferred much longer in cases where it can be kept.
I am an EU citizen that will fall under a DTT between the US and my country, so the only thing that matters to me is if I can continue to trade. I will be taxed in my country not by the US. So wash sale or not doesn't matter.
"If an investor purchases the same or a substantially identical security within the 61-day time frame, the IRS effectively ignores the transaction, and the amount of loss is added to the cost of the replacement security". The waiting period is 30 days after the loss is transacted to negate the wash. If WS doesn't want the rules to change, guess what happens?