Both sides await a federal court decision, and the outcome could significantly influence how the U.S. approaches the rapidly growing arena of perpetual futures. The dispute stems from whether perpetual futures should legally be treated as futures or swaps. Unlike traditional futures, perpetual contracts never expire. "When two parties exchange payments to each other, that is deemed a swap," he said, referring to the funding-rate mechanism used by perpetual contracts. Given that the perps are newer innovations, the IRS has not issued guidance specifically addressing the tax treatment of perpetual futures.