For U.S. tax purposes, digital assets are considered property, not currency.

A digital asset is stored electronically and can be bought, sold, owned, transferred or traded.

The tax definition of a digital asset is any digital representation of value recorded on a cryptographically secured, distributed ledger (blockchain) or similar technology (Infrastructure Investment and Jobs Act).

Examples of digital assets

These include:

Convertible virtual currencies and cryptocurrencies such as Bitcoin

Stablecoins

Non fungible tokens (NFTs)