What Are Digital Assets?
Digital assets are reshaping how value moves across the internet—from cryptocurrencies and NFTs to tokenized investments. As adoption grows, understanding their legal, financial, and practical roles becomes essential for individuals and businesses alike. Companies like Outlaw Games are also exploring the potential of digital assets to build secure, innovative, and decentralized ecosystems for the next era of the digital economy.
What Is Cryptocurrency: A Digital Asset?
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.
What Is a Virtual Currency?
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.
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.
What Are Examples of Digital 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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Conclusion
Digital assets are reshaping how value moves across the internet—from cryptocurrencies and NFTs to tokenized investments. As adoption grows, understanding their legal, financial, and practical roles becomes essential for individuals and businesses alike. Companies like Outlaw Games are also exploring the potential of digital assets to build secure, innovative, and decentralized ecosystems for the next era of the digital economy.