Macro EconomyMedium•28 September 2026•
1 min read
US Treasury Targets Wall Street Tax-Avoidance via ETF Strategies
Key Facts
1The US Treasury is limiting the use of ETFs to avoid taxable gains and targeting other potentially abusive tactics.
The US Department of the Treasury announced a crackdown on tax-avoidance strategies used by Wall Street, specifically targeting the use of ETFs to shield taxable gains. The Financial Times reported that the Treasury is limiting these tactics and other potentially abusive financial maneuvers designed to avoid taxes on investment profits.
The government aims to close regulatory loopholes that allow investors to bypass tax obligations on their portfolio gains. This tightening of rules on tax-efficient investment vehicles could reduce net returns for institutional investors and impact overall flows into the ETF market.