How are crypto futures taxed?

Crypto futures tax in the US depends mainly on where the contract trades. A futures contract listed on a US regulated exchange is usually a section 1256 contract with special rules, while perpetual contracts and offshore products sit in a grey area. For how futures and leverage work, see what are crypto futures and leverage.

Are crypto futures section 1256 contracts?

Often, yes. Section 1256 of the tax code covers regulated futures contracts. To qualify, a contract must use daily mark-to-market margining and trade on, or under the rules of, a qualified board or exchange. That includes exchanges the CFTC has designated as contract markets.

The IRS confirms in its digital asset FAQs that a digital asset contract can be a section 1256 contract, such as a regulated futures contract. EY's list of qualifying US venues, published in January 2026, includes several CFTC-designated markets tied to crypto, such as Coinbase Derivatives, Cboe Digital Exchange and Bitnomial, along with CME.

How is crypto futures trading taxed under the 60/40 rule?

For section 1256 contracts, gains and losses are split 60% long-term and 40% short-term, even if you held the position for a day. Plain crypto held as property works differently: whether a gain is short-term or long-term depends on whether you held it more than one year.

Two other rules matter. Any section 1256 contract you still hold at year end is treated as sold at its fair market value on the last business day of the tax year. And according to Form 6781, the wash sale rules do not apply to these contracts.

Gains and losses go on Form 6781, then flow to Schedule D. Brokers report these contracts in boxes 8 to 11 of Form 1099-B. Some individuals can elect to carry a net section 1256 loss back three years, against earlier section 1256 gains only. Our crypto tax forms guide covers the wider set of forms.

How are perpetual futures taxed?

This is where the rules are unsettled. A perpetual contract has no expiry and uses recurring funding payments between longs and shorts to track the spot price. Section 1256 excludes commodity swaps and similar agreements, and those funding payments look swap-like.

In May 2026 the CFTC approved a bitcoin perpetual on Kalshi as a futures contract on a designated contract market. Legal commentators say that supports section 1256 treatment, but a Bloomberg Tax analysis from September 2026 notes the IRS is not bound by the CFTC's label. If a perpetual were treated as a swap, different rules for notional principal contracts would apply. How funding payments themselves are taxed is also unclear.

Futures on offshore platforms that are not qualified boards or exchanges do not meet the statutory definition, so the 60/40 rule should not be assumed. The IRS has not issued specific guidance on these products as of October 2026.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.