The IRS's classification of cryptocurrencies as intangible property remains unchanged, even with new legislation aimed at enhancing stablecoin compliance.
The IRS continues to classify cryptocurrencies as "intangible property" for tax purposes, despite the passage of the GENIUS Act and CLARITY Act. While the GENIUS Act improves compliance for stablecoin issuers, it does not change the existing tax treatment of cryptocurrencies. Currently, crypto transactions are exempt from wash sale rules, allowing investors to carry forward losses without certain tax benefits available to securities. Without further changes to tax law, cryptocurrencies will remain taxed as property.