What Is the General Consensus among Tax Professionals regarding Regulated Crypto Futures?
The general consensus is that regulated crypto futures (e.g. CME) qualify as Section 1256 contracts.
This subjects them to the mandatory mark-to-market rule and the 60/40 capital gains tax treatment. This is based on the fact that they meet the definition of a regulated futures contract traded on a qualified exchange.
Glossar
Regulated Futures Contract
Contract ⎊ A regulated futures contract, within the evolving landscape of cryptocurrency derivatives, represents a legally binding agreement to buy or sell a specific digital asset at a predetermined price and future date, facilitated through a regulated exchange or clearinghouse.
Regulated Crypto
Framework ⎊ Regulated crypto represents the application of established legal and compliance protocols to digital asset activities, fundamentally altering the operational landscape for cryptocurrency exchanges, derivative platforms, and associated financial instruments.
Regulated Crypto Futures
Framework ⎊ Regulated crypto futures represent standardized forward contracts traded on recognized exchange platforms, obligating participants to buy or sell a specified quantity of a cryptocurrency at a predetermined future date and price.
Tax Professionals
Liability ⎊ Tax professionals navigating cryptocurrency, options, and derivatives markets require specialized expertise due to the novel character of these instruments and evolving regulatory landscapes.