365Crypto
The U.S. Internal Revenue Service (IRS) has finally given crypto investors a reason to smile. In a new update, the agency outlined rules that let exchange-traded products (ETPs) and trusts legally stake digital assets — and share the rewards with investors.
Treasury Secretary Scott Bessent announced the change on X, saying it provides “a clear path for crypto ETPs to stake digital assets and distribute staking rewards to retail holders.”
According to the IRS guidance, crypto trusts can now participate in staking if they meet strict conditions. They must trade on national exchanges, hold only cash and one digital asset type, use a custodian for safekeeping, and follow measures that protect investors.
Legal experts called it a milestone. Bill Hughes from Consensys said the move removes a long-standing legal gray area and could boost institutional participation in staking. “It’s the clarity we’ve been waiting for,” he wrote.
The update follows the SEC’s recent approval of new listing standards expected to make crypto ETFs mainstream. Interestingly, the timing coincides with the end of the U.S. government shutdown, which had kept many SEC and IRS staff on furlough since October.
(Footnote: “Staking” — locking crypto to support a blockchain network and earn rewards. “ETF” — an exchange-traded fund, a type of investment product that trades like a stock.)
