- The IRS has affirmed that cryptocurrency is property for tax purposes.
- Crypto assets will be taxed in specific ways, depending on how they are used.
- Proposed U.S. legislation could end tax deferral benefits for crypto miners and stakers.
Cryptocurrency users face specific consequences following the IRS’ affirmation of its position on the crypto tax regime, as contained in the latest Congressional Research Service (CRS) report released on September 2. The agency’s position aligns with the June 2026 US Tax Court ruling in Paschall v. Commissioner, which classified crypto as property and not currency.
This classification implies that digital assets will not enjoy the “foreign currency” tax exemptions that apply to traditional cash transactions, but that is only the tip of the iceberg. Classifying cryptocurrency as property rather than currency affects how user…
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