Stablecoins Not Cash, Says Treasury Official

A Treasury official recently confirmed that the Treasury is unlikely to issue guidance treating stablecoins as cash.  Stablecoins are digital assets that are pegged to underlying currencies or other reserve assets.  In July 2025, Congress enacted the GENIUS Act, which provided a comprehensive regulatory, but not tax, framework for stablecoins.  From a tax perspective, stablecoins continue to be treated similarly to other digital assets, i.e., as property rather than currency, and are subject to the custodial broker reporting rules discussed here, here, and here. 

While guidance treating stablecoins as cash is not expected, the Treasury official suggested that it may revisit the…