CME warns tax rules threaten perpetual futures

• CME Group said current US tax rules could limit the launch of regulated perpetual futures.
• The exchange is seeking changes to avoid potential tax issues for market participants.
• The warning comes as interest in perpetual futures grows in the US cryptocurrency market.

CME Group has warned that current US tax rules could create challenges for regulated perpetual futures contracts, according to comments from company executives.

The exchange said existing tax treatment may make it harder to introduce perpetual futures in the United States without legislative or regulatory changes.

CME said the tax treatment of perpetual futures remains uncertain because the contracts do not have an expiry date like traditional futures.

The company said resolving the tax issue would help support the development of regulated perpetual futures for US investors.

Perpetual futures are widely used in cryptocurrency markets because they allow traders to maintain positions without a fixed settlement date.

CME's comments highlight that regulatory and tax frameworks remain important factors in expanding cryptocurrency derivatives in the United States.