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Does the Wash Sale Rule Apply to Crypto Derivatives?

Wash sale rule application to non-1256 crypto is unclear; it applies to crypto-related securities and is exempt for Section 1256 crypto futures.
Greeks.Live21.11.25

Does the Wash Sale Rule Apply to Crypto Derivatives?

The application of the wash sale rule to crypto is currently unclear due to the IRS classifying crypto as property, not securities. However, derivatives based on crypto that are considered securities or contracts for securities (like options on crypto ETFs) are subject to the rule.

Regulated Section 1256 crypto futures are explicitly exempt from the wash sale rule.

Which Specific Derivatives Are Typically Classified as Section 1256 Contracts?
Does the 60/40 Rule Apply to Cryptocurrency Options on Regulated Exchanges?
Is the 60/40 Rule Mandatory for All Section 1256 Contracts?
How Does the Mark-to-Market Rule Interact with the Wash Sale Rule?

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