Is a Standard Bitcoin Futures Contract Always Considered a Section 1256 Contract? ▴ Learn

Is a Standard Bitcoin Futures Contract Always Considered a Section 1256 Contract?

Standard Bitcoin futures contracts traded on regulated U.S. exchanges, such as the CME Group, are generally considered Section 1256 contracts. This subjects them to the mark-to-market and the favorable 60/40 tax treatment.

However, futures contracts traded on unregulated or foreign cryptocurrency exchanges may not meet the criteria of a "regulated futures contract" and thus might not qualify for Section 1256 treatment.

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