Yes — cryptocurrency is a type of digital asset. It's a digital representation of value secured by cryptography and recorded on a blockchain. Under U.S. law, crypto assets such as Bitcoin and Ethereum are explicitly treated as digital assets or property.
The IRS digital assets definition classifies cryptocurrencies as property that must be reported for tax purposes. Similarly, the proposed CLARITY Act of 2025 defines digital assets as "any digital representation of value recorded on a cryptographically secured distributed ledger."
In terms of regulation, some cryptocurrencies fall under SEC oversight if they meet the Howey Test, while others—like Bitcoin and Ether—are treated as commodities by the CFTC, as explained by Pillsbury Law on digital assets.
Ultimately, cryptocurrencies share the core traits of digital assets: they are transferable, verifiable, and not backed by any government. Their value depends on scarcity, adoption, and decentralized network consensus.
A virtual currency is a digital representation of value that functions as a medium of exchange or store of value but is not legal tender. It operates digitally without government issuance.
According to the IRS Virtual Currency Guidelines (Notice 2014-21), virtual currencies like Bitcoin are treated as property for tax purposes.
Convertible virtual currencies—such as Bitcoin and Ethereum—can be exchanged for fiat money, while non-convertible ones circulate only within games or platforms, as defined in Investopedia's virtual currency overview.
Cryptocurrency is a subset of virtual currency powered by decentralized ledgers. Meanwhile, digital assets form a broader category, encompassing cryptocurrencies, NFTs, stablecoins, and tokenized property.
Digital assets include anything of value stored digitally—ranging from blockchain tokens to online media rights. Common examples include:
• Cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDC. • NFTs: Unique digital collectibles, virtual real estate, and digital art. • Tokenized Real-World Assets: Digitized real estate or tokenized gold. • Digital Content: eBooks, music, software, and online media. • Virtual Identities: Digital credentials, domains, and in-game assets.
According to the EY 2025 Digital Asset Survey, 59% of institutional investors plan to allocate more than 5% of their portfolios to digital assets. Meanwhile, the White House Digital Asset Framework outlines policies for building secure, transparent, and blockchain-driven markets.
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