Ripple CTO David Schwartz Uses Tax-Loss Harvesting Amid Market Crash

David Schwartz, Chief Technology Officer at Ripple, recently revealed he sold several stocks at a loss to take advantage of tax-loss harvesting. The move comes amid a massive market downturn that wiped out over $6 trillion in just two days—marking one of the worst sell-offs in U.S. stock market history.

Schwartz clarified that the stocks he sold were recently acquired, allowing him to realize short-term capital losses. “I try to keep losses short-term and gains long-term when I can,” he said. He then reinvested in other stocks he likes just as much, ensuring continued exposure to the market without violating IRS regulations.

Under the IRS wash-sale rule, investors cannot claim a tax deduction on a loss if they repurchase the same or substantially identical securities within 30 days. To stay compliant, Schwartz indicated he may consider switching back to the original stocks after the 31-day waiting period.

This strategy is commonly used to reduce taxable income while maintaining a similar investment position. As financial uncertainty grows, experts advise investors not to panic and avoid making hasty changes to long-term portfolios like 401(k)s. Instead, strategies such as tax-loss harvesting, diversification, and investing in buffer ETFs are being recommended to weather the storm.

The news comes as XRP, Ripple’s native token, faces a sharp drop in trading volumes—down 56%—alongside bearish trends across the broader crypto market. With rising market volatility and economic concerns, seasoned investors like Schwartz are taking calculated steps to optimize their financial positions.

Searches related to “tax-loss harvesting,” “IRS wash-sale rule,” “David Schwartz Ripple,” and “XRP market crash 2025” are spiking as investors look for guidance in turbulent times.