US Perpetual Futures Tax Uncertainty Looms

CME Group's Chairman and CEO Terry Duffy warned that cryptocurrency perpetual futures in the US could face tax uncertainty due to their structure.

Duffy said that if perpetual futures are treated as swaps under US law, they could be subject to ordinary income tax treatment instead of long-term capital gains. This would differ sharply from the current tax treatment for futures contracts.

The Internal Revenue Service has yet to issue specific guidance on perpetual futures, and investors may file taxes on them as if they were futures. However, Duffy emphasized that institutions trading perpetual futures on a large scale will face significant tax uncertainty for now.