U.S. IRS Opens Staking Path for Crypto ETFs to Get Into Yield Without Tax Headaches
A new safe harbor announced by the U.S. Internal Revenue Service on Monday is being seen as a major step toward allowing crypto exchange traded products (ETPs) to share staking rewards with their investors.
Under certain conditions, the new guidance allows trusts to “stake their digital assets without jeopardizing their tax status as investment trusts and grantor trusts for Federal income tax purposes,” according to the IRS document, which went into effect immediately. Under proof-of-stake consensus mechanisms, network participants put up or “stake” some of their cryptos — Ethereum or another crypto — to secure the network, and they receive a return for that.
Treasury Secretary Scott Bessent posted on social media site X…
