If a student or parent holds cryptocurrency (which means it is in their possession, even if it has not been sold or exchanged), it must be reported as an asset on the FAFSA®. The value to report is the value of the cryptocurrency as of the day the FAFSA® form is completed.
If a student or parent sells cryptocurrency and receives a capital gain from the sale, the taxable portion is reported on the AGI (adjusted gross income) for the year it is reported.