IRS issues guidance for allowing crypto ETPs to stake digital assets
The IRS issued guidance creating a safe harbor for exchange-traded products to stake digital assets, clarifying tax treatment.Summary
The Internal Revenue Service (IRS) has released guidance establishing a safe harbor that permits exchange-traded products (ETPs) to stake digital assets, a move cryptocurrency advocates believe significantly alters the tax treatment for traditional finance vehicles. Treasury Secretary Scott Bessent announced the guidance, stating it provides ETPs "a clear path to stake digital assets and share staking rewards with their retail investors," boosting innovation. This follows the SEC's earlier determination that proof-of-stake activities do not constitute securities transactions. The 18-page guidance outlines requirements for the safe harbor, including holding only one type of digital asset and cash, and using a qualified custodian. Experts like Bill Hughes of Consensys noted that this clarity transforms staking from a compliance risk into a tax-recognized, institutionally viable activity, which should significantly accelerate mainstream adoption of staking across proof-of-stake blockchains.
(Source：The Block)