How Does the IRS Define a "Regulated Futures Contract" in the Context of Crypto Derivatives? ▴ Learn

How Does the IRS Define a “Regulated Futures Contract” in the Context of Crypto Derivatives?

The IRS definition of a "regulated futures contract" (RFC) requires the contract to be traded on a qualified board or exchange and subject to a "mark-to-market" system of accounting for margin. For crypto derivatives, this typically means contracts traded on U.S. exchanges regulated by the CFTC.

The contract itself must also meet certain specifications. Contracts on unregulated foreign exchanges usually fail this test.

Are All Regulated Futures Contracts Considered Section 1256 Contracts?

How Do Regulatory Bodies like the CFTC Govern Margin for Cleared Crypto Derivatives?

How Does the CFTC Regulate Leverage and Margin Requirements for Crypto Futures?

What Criteria Define a “Qualified Board or Exchange” for Section 1256?