Is There a “Wash Sale” Rule Equivalent in Crypto Derivatives Trading?

The traditional US Wash Sale rule, which prevents claiming a loss on a security if a substantially identical one is bought within 30 days, does not explicitly apply to crypto under current IRS guidance. However, the IRS has not issued definitive guidance, and some tax professionals advise caution.

For Section 1256 futures contracts, the MTM rule generally overrides the Wash Sale rule.