Does the 60/40 Rule Apply to Cryptocurrency Options on Regulated Exchanges? ⎊ Path

Does the 60/40 Rule Apply to Cryptocurrency Options on Regulated Exchanges?

Yes, if the cryptocurrency option is traded on a qualified board or exchange and meets the definition of a non-equity option or a regulated futures contract equivalent, it should be treated as a Section 1256 contract. This means the 60/40 rule would apply to its gains and losses.

However, many crypto options are traded on unregulated platforms and do not qualify.

Are All Regulated Futures Contracts Considered Section 1256 Contracts?

Does the Wash Sale Rule Apply to Crypto Derivatives?

What Determines If a Crypto Option Is a Section 1256 Contract?

Are Cryptocurrency Options Generally Treated as Section 1256 Contracts?

Are All Options on Stock Indices Considered Section 1256 Contracts?

Does the Net Investment Income Tax (NIIT) Apply to Section 1256 Gains?

Is the 60/40 Rule Mandatory for All Section 1256 Contracts?

Are All Cryptocurrency Derivatives Treated as Section 1256 Contracts?