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Digital assets take many forms -- each with its own distinct tax treatment, regulatory oversight, and planning considerations. Here's what traders and investors need to know:
Bottom Line: While most digital assets remain property for tax purposes, CME-traded futures and options qualify for Section 1256's favorable 60/40 treatment. ETF structure determines whether wash sale rules apply. New IRS Form 1099-DA and legislative proposals could significantly reshape compliance starting in 2025.
For a more in-depth analysis, see a longer-form version of this blog post on GreenTraderTax.com.