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IRS Expands Key US Tax Language to Include NFTs
Newly released draft instructions for the 2022 tax year change the language from “virtual currency” to broader “digital assets.”
Updated May 9, 2023, 3:59 a.m. Published Oct 18, 2022, 11:37 p.m.
The U.S. Internal Revenue Service (IRS) has made a move this week to clarify at least one question for crypto investors: how taxpayers account for non-fungible tokens (NFT).
The tax division of the Treasury Department released an updated draft for its 2022 instructions for form 1040 filers that swaps the old category for “virtual currency” with broader new language on “digital assets,” including an explicit recognition of NFTs.
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“Digital assets are any digital representations of value that are recorded on a cryptographically secured distributed ledger or any similar technology,” according to the draft instructions. “For example, digital assets include non-fungible tokens (NFT) and virtual currencies, such as cryptocurrencies and stablecoins.”
The previous year’s “virtual currency” section of the U.S. tax-filing instructions was a narrower definition of a digital token “that functions as a unit of account, a store of value or a medium of exchange.” The final tax instructions haven’t yet been released, so the crypto section could still be tweaked before it’s official.
Crypto investors will have to calculate and report taxable income “if you disposed of any digital asset in 2022, that you held as a capital asset, through a sale, exchange, gift, or transfer,” according to the latest document.
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What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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Brazil’s Largest Asset Manager Recommends Investors Put Up to 3% of their Money in Bitcoin to Hedge Against FX, Market Shocks
The recommendation is in line with other global asset managers like BlackRock and Bank of America suggesting small portfolio allocations to the largest cryptocurrency.
What to know:
- Itaú Asset Management recommends Brazilian investors allocate 1-3% of portfolios to bitcoin for diversification, citing its low correlation with traditional assets.
- The recommendation is a measured approach, suggesting a small, steady exposure to bitcoin as a complementary asset.
- In a year-end analyst’s note, the firm called for a disciplined, long-term mindset, warning against market timing and suggesting that a small allocation can act as a partial hedge and offer access to global returns.
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