Quick Read

• Rev. Proc. 2026-20 lets qualifying crypto grantor trusts stake coins without losing pass-through tax status, but rewards are taxed as ordinary income immediately.

• A $50,000 ETH staking fund earning 2.5% annually generates $1,250 in rewards, costing a 22% bracket investor $275 in federal tax.

• If coin prices drop after rewards are earned, investors still owe ordinary income tax on the original value and can only claim losses upon sale.

• It sounds nuts, but SoFi is giving new Active Invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself (Sponsor)

Crypto funds have spent years holding proof-of-stake coins…