Kalshi's Bitcoin perpetual contract tax classification has not yet been determined, recognized by the CFTC as a futures contract, and CME states it falls under swaps

Bitcoin News posted on platform X that after the CFTC approved Kalshi's Bitcoin perpetual contracts as futures products, traders face uncertainty on how to report gains to the IRS.

If the product is classified as a regulated futures contract under Section 1256 of the U.S. Tax Code, related gains are typically treated as 60% long-term capital gains and 40% short-term capital gains, regardless of the holding period. CME believes that Kalshi's perpetual contracts are actually swaps, which are explicitly not covered under Section 1256. The CFTC's classification supports the view that it is a futures product, but does not bind the IRS; the tax treatment remains uncertain until the IRS, Congress, or the courts directly address Bitcoin perpetual contracts.