The IRS just handed crypto funds permission to earn staking rewards, but the tax consequences catch most investors off guard, especially when coin prices fall after the rewards are taxed.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Crypto funds have spent years holding proof-of-stake coins while leaving the networks’ built-in yield untouched. That changed on October 6, 2026, when the IRS released Revenue Procedure 2026-20. It’s a safe harbor that lets qualifying crypto trusts stake their coins without losing the tax status their structure depends on.
For investors, that means a new stream of income. It also means a new tax bill. The…
