Crypto Taxes

The October 20, 2026 deadline in CFTC Staff Letter No. 26-29 has passed, closing a temporary procedural window for certain US futures contract conversions. It did not automatically authorize every cryptocurrency perpetual or convert every outstanding position. The distinction matters: the relief specifically addressed existing broad-based security index perpetual-style futures, although Coinbase Derivatives’ request sits within the larger development of regulated perpetual markets. CFTC Release 9308-26 For traders, the substantive opportunity is a familiar trading instrument inside a different legal structure. No-expiry exposure can coexist with US exchange supervision, central clearing, customer-fund protections, and potentially favorable federal tax treatment. Each benefit depends on the actual contract and account—not simply the word “perpetual” on a trading screen. ...

The operational danger in the United States’ 2026 crypto reporting rollout is a missing link between a sale and its acquisition history. A brokerage can know exactly how much cryptocurrency it sold for a customer while lacking the records needed to establish that customer’s taxable profit. For investors moving years-old holdings out of self-custody, preparing that history before liquidation is now a central tax-control task. The phrase zero-basis trap describes a reporting and substantiation failure, not a rule that confiscates the basis of deposited assets. Transferring holdings between wallets or accounts owned by the same taxpayer generally does not create income; digital assets spent on transfer services require separate consideration. The transfer itself does not establish a new purchase price. IRS digital-asset transaction FAQs, question 81. ...