The US Internal Revenue Service (IRS) has published new guidance that creates a safe harbor for exchange-traded products (ETPs) that stake digital assets.
This move, which crypto advocates hail as transformative for traditional finance, provides much-needed clarity on the tax treatment of staking rewards.
Treasury Secretary Scott Bessent announced the news, stating that the guidelines offer ETPs "a clear path to stake digital assets and share staking rewards with their retail investors."
He added that it "increases investor benefits, boosts innovation, and keeps America the global leader in digital asset and blockchain technology."
The guidance outlines specific requirements for trusts, including that they can only stake on permissionless proof-of-stake networks, hold one type of digital asset and cash, and use a qualified custodian.