IRS Reaffirms Crypto as Property, Not Currency: Tax Implications Unfolding

The U.S. Internal Revenue Service (IRS) has reaffirmed its position that cryptocurrency is property for tax purposes, not currency.

This classification means that crypto assets will be taxed differently depending on how they are used.

In a recent Congressional Research Service report, the agency's stance aligns with the June 2026 U.S. Tax Court ruling in Paschall v. Commissioner, which also classified crypto as property and not currency.

The IRS's position implies that digital assets will not enjoy foreign currency tax exemptions available for traditional cash transactions.