Can US residents use dYdX for perpetual trading?

As of 2026, dYdX perpetuals are not available to US residents due to regulatory restrictions. US users may have historical activity from before geo-blocking was implemented.

Independent resource — not affiliated with dYdX.

Important: dYdX trades perpetual futures — tax treatment can be complex. Consider consulting a crypto-specialized tax professional.

dYdX Tax Software Compared

Q: How do I report dYdX perpetual futures on my taxes?

dYdX perpetual futures may be treated as Section 1256 contracts (60% long-term, 40% short-term gains) or as ordinary income, depending on their structure and your circumstances. Given the complexity, consult a crypto-specialized tax professional.

Based on perpetuals/derivatives support and user feedback from forums.

Koinly

Best for dYdX

Better perpetuals/derivatives support — handles futures trading with margin calculations
900+ integrations — more platforms if you trade across multiple exchanges
dYdX API integration — direct import of trading history
Perpetuals PnL not auto-imported — requires CSV export from dYdX; manual review recommended

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Also Strong: Awaken Tax

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dYdX natively supported — explicitly listed as a supported protocol
Strong perpetuals/derivatives support — built for DeFi-heavy traders
White-glove service — dedicated tax professionals for complex portfolios
Smaller user base — less community troubleshooting available

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Alternative: CoinLedger

Clean interface, beginner-friendly
Good for simpler portfolios with spot trading
Less robust perpetuals/derivatives support compared to Koinly
May require more manual adjustments for complex futures trades

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Perpetual futures tax reporting is complex — manual review and professional guidance recommended.

dYdX Tax Issues to Know

DYDX Token Migration (Dec 2024)

The DYDX token migrated from Ethereum (ethDYDX) to the native dYdX Chain at a 1:1 ratio. The migration bridge was shut down on June 9, 2025 following a governance vote with 91% approval. Approximately ~41.7M ethDYDX tokens (~$26.2M) are confirmed stranded on Ethereum with essentially no liquidity — many retail holders were unaware of the deadline. Kraken and other exchanges handled this automatically. The migration is generally treated as a non-taxable event (same asset, different chain), but if you hold stranded ethDYDX, consult a tax professional about potential loss recognition.

Perpetual Futures Tax Treatment

Crypto perpetuals do not qualify for Section 1256 treatment (the 60/40 long-term/short-term split). They are taxed as regular property transactions reported on Form 8949. Since perpetual swaps settle daily and have no expiration date, most gains are effectively short-term capital gains, taxed at your ordinary income rate.

IRS Notice 2024-57 exempts notional principal contracts (including perpetuals) from Form 1099-DA reporting until further guidance is issued. You're still required to report gains/losses — the exemption only applies to broker reporting requirements.

Important: Koinly does not auto-import PNL from dYdX perpetuals. You must manually add trades via CSV export. Professional tax advice is strongly recommended for perpetuals.

DYDX Staking Rewards

Staking DYDX tokens earns rewards that are taxable as ordinary income when received (IRS Rev. Rul. 2023-14). The fair market value at receipt becomes your cost basis. Track the date and value of each reward.

US Regulatory Status

dYdX launched Solana spot trading for US users (with KYC) — the first US market access on the platform. However, perpetuals remain blocked for US residents pending CFTC/SEC guidance. If you have historical perpetuals activity from before geo-blocking, you still need to report it. The platform's decentralized nature doesn't exempt you from tax obligations.

Fee Buyback Program (Updated March 2026)

The community approved increasing the buyback allocation to 75% of protocol fees (up from an initial 25%). An experimental 100% buyback ran through January 2026. Staking rewards from buybacks are distributed as USDC and are taxable as ordinary income at the fair market value when received.

Staking Changes (2026)

dYdX introduced a new "Stake-for-Reduced Fees" program — trading fee discounts are now linked to DYDX staking amounts. Current staking yield is very low (~0.02%). There is a 30-day unbonding period when unstaking. Any staking rewards (however small) remain taxable as ordinary income when received.

FAQ

How do I report dYdX perpetual futures on my taxes?

Crypto perpetuals are currently classified as regular crypto property (not Section 1256 contracts), so gains are short-term or long-term based on holding period. IRS Notice 2024-57 exempts perpetuals from Form 1099-DA reporting until further guidance is issued. Consult a crypto-specialized tax professional for your specific situation.

Is the DYDX token migration from Ethereum to dYdX Chain taxable?

The 1:1 migration from ethDYDX to native DYDX is generally considered a non-taxable event since it's the same asset on a different chain. However, tax treatment can vary by jurisdiction — document everything and consult a professional.

Are DYDX staking rewards taxable?

Yes. DYDX staking rewards are taxable as ordinary income at fair market value when received (IRS Rev. Rul. 2023-14). This becomes your cost basis for future sales.

Can US residents use dYdX?

dYdX launched Solana spot trading for US users (with KYC) — the first US market access on the platform. However, perpetuals remain blocked for US residents pending CFTC/SEC guidance. US users may also have historical perpetuals activity from before geo-blocking that still needs to be reported.

Sources

Last updated: March 2026