The Internal Revenue Service released a safe harbor allowing crypto exchange-traded products to stake digital assets without jeopardizing their tax status. Under the guidance, trusts may receive staking rewards while retaining investment trust classification.
Industry stakeholders described the announcement as removing a significant legal barrier that had discouraged fund sponsors, custodians and asset managers from integrating staking yield into regulated products. Experts expect increased participation in network staking and liquidity provision.
Treasury Secretary Scott Bessent characterized the guidance as a clear path toward sharing staking rewards with retail investors, stating that it boosts innovation and maintains U.S. leadership in digital asset technology.
The policy applies to permissionless proof-of-stake networks and follows SEC clarifications that staking does not constitute a securities transaction. Observers anticipate growth in crypto ETP issuance and enhanced network decentralization.
Market analysts predict that streamlined tax treatment may spur a new wave of product launches and expand on-chain utility. Continued regulatory developments are being monitored for additional clarity and enforcement guidance.
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