IRS Updates Digital Asset Guidance, CFTC Commissioner Warns Of Crypto Risk

The U.S. Internal Revenue Service (IRS) reportedly released guidelines that state that digital assets, which now explicitly include stablecoins, NFTs and cryptocurrencies, are taxed pursuant to the same rules. This is a change from last year's guidance, which included a virtual currency section defining a digital token as "a unit of account, a store of value, or a medium of exchange." According to reports, taxpayers who have "disposed of any digital asset in 2022" - whether as a sale, exchange, gift or other transfer - are required to report this income and pay capital gains tax. Notably, capital gains are taxed at a lower rate than the tax rate applied to the disposition of collectibles such as collectible art, antiques or gems.