The IRS views crypto currency as property. In that context, they provided this recently: https://www.irs.gov/uac/newsroom/irs-virtual-currency-guidance https:

The IRS views crypto currency as property. In that context, they provided this recently: https://www.irs.gov/uac/newsroom/irs-virtual-currency-guidance https://www.irs.gov/uac/newsroom/irs-virtual-currency-guidan... Which links to: https://www.irs.gov/pub/irs-drop/n-14-21.pdf https://www.irs.gov/pub/irs-drop/n-14-21.pdf TL;DR - it's not currency, it's property, and as taxed as such in all ways (including recognizing gain/loss). Specifically re: your question: > Q-6: Does a taxpayer have gain or loss upon an exchange of virtual currency for other property? > A-6: Yes. If the fair market value of property received in exchange for virtual currency exceeds the taxpayer’s adjusted basis of the virtual currency, the taxpayer has taxable gain.