Are actual traditional currency holdings still taxed in the US on unrealized gains and losses each year? The rules in question would seem to clarify that crytos are not mere currencies.
digital assets are not taxed on unrealized gains and losses, unless by realize you wish that meant “to dollars in my bank account”, asset to asset trades are taxed on their notional dollar amounts
and nobody is conflating the currency aspect of crypto, that misnomer is so last decade. if someone starts a conversation with that word, I’m not going to correct them until a reply like yours tries to read too deep into it
I think you are conflating capital gains with securities, but there are in fact many asset classes besides securities.