Crypto Options & Futures Tax Guide 2026: Section 1256 vs 988

Quick Answer

Crypto derivatives—including CME Bitcoin futures, crypto options, and perpetual swaps—are taxed differently than spot crypto holdings. CME-listed BTC and ETH futures may qualify for the Section 1256 60/40 tax split, which taxes 60% of gains at the long-term capital gains rate and 40% at the short-term rate regardless of holding period, potentially saving traders thousands of dollars. However, most offshore perpetual swaps and non-CFTC-regulated crypto futures are taxed as ordinary income under Section 988, making correct classification and reporting essential for every crypto derivatives trader in 2026.

Key Takeaways

• Section 1256 vs Section 988 is the most important tax distinction for crypto derivatives traders—the difference can mean paying 15% vs 37% on the same gain.
• CME Bitcoin and Ethereum futures traded on regulated US exchanges qualify for the 60/40 blended tax rate under Section 1256, creating significant tax savings for active traders.
• Perpetual swaps traded on offshore exchanges (Binance, Bybit, OKX) are generally treated as Section 988 ordinary income, not eligible for the 60/40 split.
• Crypto options tax treatment depends on the exchange, underlying asset, and whether you’re buying or writing calls and puts—each scenario has different reporting requirements.
• Mark-to-market accounting (Section 475(f)) can be elected for crypto futures but comes with trade-offs, including the loss of the 60/40 benefit under Section 1256.
• Reporting involves multiple IRS forms: Form 6781 for Section 1256 contracts, Form 8949 for capital gains, and Schedule D for reconciliation—plus potential FBAR and FATCA obligations for offshore accounts.

---

What Are Crypto Derivatives?

Crypto derivatives are financial contracts that derive their value from an underlying cryptocurrency’s price. Unlike buying Bitcoin or Ethereum directly (spot trading), derivatives let you speculate on price movements, hedge existing positions, or gain leveraged exposure without holding the actual asset.

The three main types of crypto derivatives are:

1. Crypto Futures

Futures contracts obligate the buyer to purchase (and the seller to sell) a specific amount of cryptocurrency at a predetermined price on a set future date. In the US, the CME Group offers regulated Bitcoin and Ethereum futures contracts that are subject to CFTC oversight.

• CME Bitcoin Futures: Each contract represents 5 BTC, settled in cash based on the CME CF Bitcoin Reference Rate.
• CME Micro Bitcoin Futures: Smaller contracts representing 0.1 BTC, making them accessible to retail traders.
• CME Ether Futures: Each contract represents 50 ETH, also cash-settled.
• Offshore Crypto Futures: Platforms like Binance, Bybit, and OKX offer crypto-margined and stablecoin-margined futures with varying settlement methods.

The distinction between regulated US exchange futures and offshore futures is critical for tax purposes—it determines whether you qualify for the favorable Section 1256 treatment.

2. Crypto Options

Options give the holder the right (but not the obligation) to buy (call) or sell (put) a cryptocurrency at a specified price (strike price) before or on an expiration date. Crypto options strategies include:

• Buying calls/puts: Paying a premium for directional exposure
• Writing covered calls: Selling call options against crypto you already own
• Writing cash-secured puts: Selling put options to potentially buy crypto at a lower price
• Spreads and straddles: Combining multiple options for defined-risk strategies

Crypto options are available on regulated exchanges like CME (Bitcoin and Ethereum options) and LedgerX/Deribit (though Deribit operates offshore).

3. Perpetual Swaps (Perps)

Perpetual swaps are the most popular crypto derivative by trading volume, but they’re unique to the crypto market. Unlike traditional futures, perpetual swaps never expire—they use a funding rate mechanism to keep the contract price close to the underlying spot price.

Key characteristics:

• Traded almost exclusively on offshore centralized exchanges (Binance, Bybit, OKX, Bitget) and some DeFi protocols
• High leverage available (up to 100x or more)
• No expiration date—positions can be held indefinitely
• Funded through periodic funding rate payments between long and short traders

Perpetual swaps present unique tax challenges because they don’t fit neatly into existing IRS frameworks.

---

Section 1256 vs Section 988: The Core Tax Distinction

The single most important tax question for crypto derivatives traders is whether their contracts fall under Section 1256 or Section 988 of the Internal Revenue Code. The difference can be tens of thousands of dollars on the same trading activity.

Section 1256 Contracts

Section 1256 applies to regulated futures contracts traded on US exchanges and certain other qualifying instruments. For tax purposes, gains and losses on Section 1256 contracts receive automatic 60/40 tax treatment:

• 60% of gains are taxed at the long-term capital gains rate (0%, 15%, or 20% for 2026)
• 40% of gains are taxed at the short-term capital gains rate (equal to your ordinary income rate, up to 37%)

This creates a blended maximum rate of approximately 26.8% instead of the 37% ordinary income rate—a potential savings of over 10 percentage points on your gains.

Eligible crypto derivatives under Section 1256:

• CME Bitcoin futures (standard and micro)
• CME Ethereum futures
• CME Bitcoin and Ethereum options (when listed as Section 1256 contracts)
• Other regulated futures contracts traded on designated US contract markets

Section 988 Transactions

Section 988 governs foreign currency transactions and generally applies to any derivative that doesn’t qualify under Section 1256. Under Section 988, all gains and losses are treated as ordinary income—taxed at your marginal rate up to 37%.

Crypto derivatives typically taxed under Section 988:

• Perpetual swaps on offshore exchanges (Binance, Bybit, OKX, etc.)
• Non-CFTC-regulated futures contracts
• Inverse futures and crypto-margined contracts
• Some over-the-counter (OTC) crypto derivatives

Quick Comparison Table

Feature	Section 1256	Section 988
Tax rate on gains	60/40 split (blended ~26.8% max)	Ordinary income (up to 37%)
Mark-to-market	Automatic at year-end	Optional election
Loss treatment	Full deduction against all income	Ordinary loss (limited to $3,000 net capital loss offset)
Reporting form	Form 6781	Form 8949 / other
Eligible crypto instruments	CME BTC/ETH futures & options	Perpetual swaps, offshore futures

---

CME Bitcoin Futures: The 60/40 Tax Advantage Explained

Let’s walk through a concrete example to show how significant the Section 1256 advantage can be.

Example: $100,000 Gain on CME Bitcoin Futures

Trader A makes $100,000 in net gains trading CME Bitcoin futures throughout 2026. They’re in the highest tax bracket (37% marginal rate).

Under Section 1256 (60/40 split):

• $60,000 taxed at long-term rate (20% for high earners) = $12,000
• $40,000 taxed at short-term rate (37%) = $14,800
• Total tax: $26,800 (effective rate: 26.8%)

Under Section 988 (ordinary income):

• $100,000 taxed at 37% = $37,000
• Total tax: $37,000 (effective rate: 37%)

Tax savings from Section 1256: $10,200 on the same $100,000 gain.

For traders with larger gains, the savings compound dramatically. A trader making $500,000 in CME Bitcoin futures gains could save over $50,000 in taxes compared to perpetual swap trading.

Year-End Mark-to-Market

Section 1256 contracts are automatically marked to market at year-end. This means:

1. All open positions are treated as if they were sold at fair market value on December 31
2. Unrealized gains are taxed in the current year
3. Unrealized losses are deductible in the current year
4. The cost basis of open positions is adjusted to the year-end fair market value

This is a double-edged sword. If you have large unrealized gains on December 31, you’ll owe tax even though you haven’t closed the position. Conversely, unrealized losses provide an immediate deduction.

---

Crypto Options Tax Treatment

Options on cryptocurrency present a more nuanced tax picture than futures. The treatment depends on the type of option, the exchange, and your specific activity.

Buying Call Options on Crypto

When you buy a Bitcoin or Ethereum call option:

• The premium paid is your cost basis (not deductible until the option is closed)
• If the option expires worthless, you realize a capital loss equal to the premium paid
• If you exercise the option, the premium is added to your cost basis in the underlying crypto
• If you sell the option before expiration, the difference between sale price and premium is a capital gain or loss

Example: You buy a Bitcoin call option for $2,000 (premium) with a $70,000 strike price expiring in March 2026. If BTC is at $75,000 at expiration and you sell the option for $5,500, you have a $3,500 capital gain.

Buying Put Options on Crypto

Put options work similarly in reverse:

• Premium paid is your cost basis
• Expiration worthless = capital loss on the premium
• Exercise = the premium reduces the total proceeds from selling the crypto
• Early sale = capital gain or loss on the difference

Writing Covered Calls on Crypto

Writing (selling) covered calls against crypto you own generates premium income, but the tax treatment depends on the outcome:

• Option expires worthless: The premium received is a short-term capital gain
• Option is exercised: The premium is added to the sale price of your crypto, potentially converting what would be a long-term gain into a short-term one if the option was held less than a year
• Buy back (close) the option: Capital gain or loss based on the difference between premium received and repurchase cost

Warning: Writing covered calls on appreciated crypto can jeopardize your long-term capital gains treatment on the underlying if the option is exercised and the holding period rules aren’t met. This is a common trap for crypto investors using options strategies.

Section 1256 Treatment for Crypto Options

CME Bitcoin and Ethereum options may qualify as Section 1256 contracts if they meet the regulatory requirements. This would provide the same 60/40 tax split as CME futures. However, the classification depends on how the specific contract is structured and regulated—consult a tax professional for your specific situation.

Options traded on offshore platforms like Deribit are not Section 1256 contracts and are taxed under general capital gains rules or Section 988.

---

Perpetual Swap Tax Complications

Perpetual swaps are the most tax-complicated crypto derivative because they don’t have a direct analog in traditional finance. Here’s what makes them challenging:

Classification Uncertainty

The IRS has not issued specific guidance on perpetual swaps. Most tax professionals treat them under one of these frameworks:

1. Section 988 (foreign currency transaction): The most common treatment, since perpetual swaps are traded on offshore exchanges and function similarly to forex contracts. Gains are ordinary income.

2. Notional principal contracts (NPCs): Some practitioners argue perps could be treated as NPCs under IRS rules, which have their own timing and character rules.

3. General capital asset treatment: Less common, but some argue that if the perpetual swap is not a “regulated futures contract” and not clearly a Section 988 transaction, it defaults to capital asset treatment.

Until the IRS issues specific guidance, the conservative approach is Section 988 treatment for perpetual swaps.

Funding Rate Payments

Perpetual swaps involve periodic funding rate payments between long and short traders. These payments are essentially the cost of maintaining your position and should be treated as:

• Traders: Deductible as an ordinary business expense (if you qualify as a trader in securities under IRS rules)
• Investors: Added to or subtracted from your cost basis in the position
• Net positive funding received: Taxable as ordinary income under Section 988

Example: You hold a $50,000 long BTC perpetual swap position on Bybit for three months. During this time, you pay $1,200 in net funding rates. This $1,200 increases your cost basis, reducing your eventual gain (or increasing your loss) when you close the position.

Liquidation Events

If your perpetual swap position is liquidated:

• The entire margin posted becomes a realized loss
• Any funding rate payments previously made are included in the loss calculation
• The loss is an ordinary loss under Section 988 (fully deductible against ordinary income, not subject to the $3,000 capital loss limitation)

---

Mark-to-Market Accounting for Crypto Futures

Section 475(f) allows traders (not investors) to elect mark-to-market accounting, which changes how gains and losses are recognized. Here’s how it interacts with crypto derivatives:

Section 475(f) Election

If you qualify as a trader in securities (a high bar requiring substantial, frequent, and continuous trading activity), you can elect mark-to-market accounting:

• All positions are treated as sold at fair market value on the last business day of the year
• All gains and losses are treated as ordinary income/loss
• The wash sale rule does not apply to mark-to-market positions
• Ordinary losses are fully deductible against any type of income (no $3,000 limitation)

The Trade-Off: Section 475 vs Section 1256

Here’s the critical decision for CME futures traders:

• Without Section 475 election: CME futures get Section 1256 treatment (60/40 split, favorable rates)
• With Section 475 election: All positions become ordinary income—you lose the 60/40 benefit but gain full ordinary loss deductibility

Which is better? It depends on your situation:

Scenario	Better Choice
Large net gains, modest losses	Section 1256 (keep the 60/40 split)
Large net losses	Section 475 (full ordinary loss deduction)
Mix of gains and losses	Run the numbers both ways

Making the Election

The Section 475(f) election must be made by the original due date of the tax return (without extensions) for the year before the year you want it to take effect. For the 2026 tax year, the election deadline is April 15, 2026. This is a strict deadline with no extensions—if you miss it, you can’t make the election for 2026.

---

Loss Limitations and Wash Sale Rule Interactions

Crypto derivatives traders need to understand how loss limitations interact with their positions, especially given the evolving wash sale landscape.

Current Wash Sale Rules (2026)

As of 2026, the IRS wash sale rule (Section 1091) applies to stocks and securities. The key question is whether crypto derivatives are “securities” for this purpose.

• CME futures and options: Generally considered regulated futures contracts, not securities—the wash sale rule does not currently apply
• Perpetual swaps: Not clearly securities, so wash sale treatment is uncertain
• Crypto spot: The IRS has taken the position that cryptocurrency is property, not a security, so the wash sale rule technically doesn’t apply (though this could change)

This means you can currently sell a losing CME Bitcoin futures position and immediately buy a similar position back without triggering a wash sale disallowance—a significant advantage over equity traders.

For more details, see our complete guide on the crypto wash sale rule in 2026.

Capital Loss Limitations

If your crypto derivatives trading results in a net capital loss for the year:

• Section 1256 losses: Reported on Form 6781, split 60/40 between long-term and short-term. Net losses can offset all capital gains plus up to $3,000 of ordinary income. Excess carries forward indefinitely.
• Section 988 losses: Ordinary losses, fully deductible against all types of income with no annual limitation. This is one advantage of Section 988 treatment.

Straddle Rules

The IRS straddle rules (Section 1092) may apply when you hold offsetting positions in crypto derivatives that substantially diminish your risk of loss. If the straddle rules apply:

• Losses on one leg may be deferred to the extent you have unrealized gains in the offsetting position
• The holding period for the winning position may be affected
• This can be particularly relevant for crypto options spreads and futures hedging strategies

---

Reporting Requirements: Forms and Deadlines

Reporting crypto derivatives transactions requires familiarity with several IRS forms:

Form 6781 (Section 1256 Contracts)

For CME Bitcoin and Ethereum futures that qualify under Section 1256:

• Report all gains and losses from Section 1256 contracts on Form 6781
• Gains and losses are automatically split 60/40 between long-term and short-term
• Open positions are marked to market at year-end
• The net amount flows to Schedule D

Form 8949 (Capital Gains and Losses)

For crypto derivatives not covered by Section 1256:

• Report each transaction on Form 8949 (or aggregate if you have hundreds of transactions)
• Categorize as short-term (Part I) or long-term (Part II)
• Totals flow to Schedule D

Schedule D (Capital Gains and Losses)

• Reconciles all capital gains and losses from Forms 8949 and 6781
• Calculate your net capital gain or loss
• Apply the $3,000 annual ordinary income offset limitation (if applicable)

Additional Reporting for Offshore Accounts

If you trade perpetual swaps on offshore exchanges, you may have additional reporting obligations:

• FBAR (FinCEN Form 114): Required if your aggregate foreign financial accounts exceed $10,000 at any point during the year. Offshore exchange accounts may qualify.
• FATCA (Form 8938): Required if your specified foreign financial assets exceed $50,000 ($100,000 if married filing separately) on the last day of the year, or $75,000 ($150,000 MFJ) at any point during the year.
• Penalties for non-compliance are severe: up to $10,000 per violation for FBAR and $10,000-$50,000 for FATCA.

For a comprehensive overview of all reporting requirements, see our crypto tax reporting guide for 2026.

---

Practical Examples: Crypto Derivatives Tax Scenarios

Example 1: CME Bitcoin Futures Trader

Sarah trades CME Bitcoin futures throughout 2026:

Trade	Result
January: Buy 2 CME BTC futures contracts at $42,000	—
March: Sell 2 contracts at $48,000	+$60,000 gain
June: Buy 1 CME Micro BTC contract at $45,000	—
August: Sell 1 contract at $40,000	-$5,000 loss
November: Buy 2 contracts at $50,000	—
December 31: Mark-to-market at $55,000	+$50,000 unrealized gain

Total Section 1256 gain: $105,000

Tax calculation (60/40 split):

• $63,000 at long-term rate (20%) = $12,600
• $42,000 at short-term rate (32%—Sarah’s marginal rate) = $13,440
• Total tax: $26,040 (effective rate: 24.8%)

Without Section 1256 treatment, Sarah would pay $33,600 (32% on all gains)—a $7,560 savings.

Example 2: Perpetual Swap Trader

Mike trades BTC perpetual swaps on Bybit:

Trade	Result
January: Long $100,000 BTC-PERP at $42,000	—
Funding rate payments (3 months)	-$1,800
April: Close position at $48,000	+$14,285 gain
May: Short $80,000 BTC-PERP at $50,000	—
Funding rate received (2 months)	+$900
July: Close position at $53,000	-$4,800 loss

Net Section 988 gain: $8,585 ($14,285 - $1,800 + $900 - $4,800)

Tax calculation (ordinary income):

• $8,585 at Mike’s marginal rate of 35% = $3,005

If Mike had traded CME futures instead, the effective rate would be approximately 26.8%, saving about $700 on the same trading activity.

Example 3: Covered Call Writer

Lisa holds 10 BTC purchased at $30,000 each ($300,000 cost basis). BTC is now at $45,000. She writes covered calls:

Transaction	Details
Write 10 BTC calls, strike $50,000, expiring March 2026	Receive $15,000 premium
March: BTC at $48,000 (below strike)	Options expire worthless
Result	$15,000 short-term capital gain (premium income)

Lisa keeps her 10 BTC with the original $300,000 cost basis and long-term holding period intact. The $15,000 premium is a short-term capital gain, taxed at her ordinary rate.

If the calls had been exercised (BTC above $50,000), Lisa would have sold her BTC at $50,000 plus the $15,000 premium, for total proceeds of $515,000 on a $300,000 investment—a $215,000 gain. Depending on whether the options were qualified covered calls, some of this gain might be short-term. See our guide on crypto short-term vs long-term capital gains for more details.

---

Mid-Year 2026 Tax Planning Strategies

With half of 2026 still ahead, here are actionable strategies for crypto derivatives traders:

1. Evaluate Your Derivatives Mix

If most of your trading is on offshore perpetual swaps, consider whether shifting some activity to CME futures makes sense. The Section 1256 tax savings alone can justify the potentially higher fees and lower leverage on regulated exchanges.

Action step: Calculate your projected 2026 perpetual swap gains. If over $50,000, moving even a portion to CME futures could save $5,000+ in taxes.

2. Harvest Section 988 Losses

Unlike capital losses (limited to $3,000 annual offset against ordinary income), Section 988 ordinary losses are fully deductible. If you have losing perpetual swap positions, closing them before year-end provides a full ordinary loss deduction.

Action step: Review open perpetual swap positions with unrealized losses. Consider closing and re-establishing positions (no wash sale rule concern for Section 988 transactions) to realize losses before December 31.

3. Manage Year-End Mark-to-Market Exposure

If you have large unrealized gains in CME futures, remember they’ll be marked to market on December 31. You’ll owe tax on gains you haven’t realized in cash.

Action step: By mid-year, estimate your potential mark-to-market exposure. If it’s significant, consider reducing position sizes before year-end or setting aside cash for the tax bill.

4. Consider Section 475(f) Election

If you’re a qualifying trader with significant losses, the Section 475(f) mark-to-market election converts all gains and losses to ordinary income treatment. But remember—the deadline for the 2026 tax year was April 15, 2026. If you missed it, start planning for the 2027 election now.

5. Track Funding Rates Meticulously

Funding rate payments on perpetual swaps are deductible (for traders) or adjust your cost basis (for investors). Many traders overlook these, leaving money on the table.

Action step: Export your funding rate history from each exchange monthly. For more strategies on optimizing your crypto tax position, see our crypto loss harvesting strategies guide.

6. Document Everything

The IRS is increasing scrutiny on crypto transactions. Maintain detailed records of:

• Every derivatives trade (entry price, exit price, fees, funding rates)
• Which exchange each trade occurred on (for Section 1256 vs 988 classification)
• Account balances on offshore exchanges (for FBAR/FATCA)
• Any positions open on December 31 (for mark-to-market)

---

How to Choose the Right Tax Treatment

Use this decision framework to determine how your crypto derivatives should be classified:

1. Is the contract traded on a US regulated exchange (CME)? → Likely Section 1256
2. Is it a perpetual swap on an offshore exchange? → Likely Section 988
3. Is it a crypto option on CME? → Possibly Section 1256 (depends on contract structure)
4. Is it a crypto option on Deribit or another offshore platform? → General capital gains rules or Section 988
5. Are you a qualifying trader who elected Section 475? → Ordinary income treatment overrides everything

When in doubt, consult a tax professional who specializes in cryptocurrency. The cost of professional advice is almost always less than the cost of an IRS audit or penalties.

---

Use Our Crypto Tax Calculator

Calculating taxes on crypto derivatives manually is error-prone and time-consuming. Our crypto tax calculator handles:

• Automatic Section 1256 vs Section 988 classification
• 60/40 split calculations for CME futures
• Funding rate tracking and cost basis adjustments
• Mark-to-market year-end reporting
• Form 6781, 8949, and Schedule D generation
• Support for all major exchanges (CME, Binance, Bybit, OKX, and more)

Stop guessing on your crypto derivatives taxes. Try our calculator today and file with confidence.

---

Frequently Asked Questions

Are CME Bitcoin futures taxed under Section 1256 or Section 988?

CME Bitcoin futures are regulated futures contracts traded on a designated US contract market, so they qualify for Section 1256 treatment. This means your gains receive the 60/40 tax split—60% taxed at the long-term capital gains rate and 40% at the short-term rate—regardless of how long you held the position. This is significantly more favorable than Section 988 ordinary income treatment that applies to most offshore crypto futures and perpetual swaps.

How are perpetual swap gains taxed compared to CME crypto futures?

Perpetual swap gains are generally taxed as ordinary income under Section 988, with rates up to 37%. In contrast, CME Bitcoin and Ethereum futures qualify for Section 1256 treatment with a blended maximum rate of approximately 26.8%. On a $100,000 gain, this difference can mean paying roughly $26,800 (CME futures) versus $37,000 (perpetual swaps)—a savings of over $10,000 by choosing the regulated exchange.

Do I need to report crypto options trades on Form 6781?

Crypto options traded on CME as regulated contracts should be reported on Form 6781 if they qualify as Section 1256 contracts. However, crypto options traded on offshore platforms like Deribit do not qualify for Section 1256 treatment and should be reported on Form 8949 as capital gains transactions. The specific reporting form depends on the exchange and contract structure.

Can I claim the Section 1256 60/40 tax split on Bitcoin futures traded on Binance?

No. Bitcoin futures traded on Binance, Bybit, OKX, or any offshore exchange that is not a CFTC-regulated designated contract market do not qualify for Section 1256 treatment. These are generally treated as Section 988 transactions taxed at ordinary income rates. Only futures traded on US-regulated exchanges like CME qualify for the 60/40 split.

How do funding rate payments on perpetual swaps affect my crypto taxes?

Funding rate payments on perpetual swaps are treated as adjustments to your overall position. For traders, funding paid is deductible as an ordinary business expense, and funding received is taxable as ordinary income. For investors, funding payments adjust your cost basis in the position—reducing your gain (or increasing your loss) when you close the position. Always track funding rates separately as they can significantly impact your tax liability.

What is the mark-to-market rule for CME crypto futures at year-end?

Section 1256 requires all open CME crypto futures positions to be marked to market on the last business day of the year. This means the IRS treats your open positions as if they were sold at the December 31 closing price. Unrealized gains are taxable in the current year, and unrealized losses are deductible. Your cost basis is then adjusted to the year-end price for the following tax year.

Do crypto futures losses offset ordinary income or only capital gains?

It depends on the tax treatment. Section 1256 losses (CME futures) are split 60/40 and offset capital gains first, with up to $3,000 of excess loss offsetting ordinary income per year (remainder carries forward). Section 988 losses (perpetual swaps, offshore futures) are ordinary losses and can fully offset any type of income with no annual limitation—making Section 988 loss treatment potentially more valuable if you have significant non-capital income.

How do I report crypto derivatives from offshore exchanges for FBAR and FATCA?

If your aggregate balance across all offshore exchange accounts (Binance, Bybit, OKX, etc.) exceeded $10,000 at any point during the year, you must file FinCEN Form 114 (FBAR) by April 15 (with automatic extension to October 15). If your specified foreign financial assets exceeded $50,000 on the last day of the year (or $75,000 at any point), you must also file Form 8938 (FATCA) with your tax return. Failure to file carries penalties of $10,000 or more per violation.

---

---

Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws and IRS interpretations change frequently. Consult a qualified tax professional regarding your specific situation before making any tax decisions related to crypto derivatives trading.