The U.S. Treasury and IRS have eased regulations for digital assets, allowing crypto funds to engage in staking without facing tax complications. This development paves the way for broader adoption of staking within regulated financial products.
The IRS issued new guidance—Revenue Procedure 2025-31—permitting cryptocurrency trusts and exchange-traded products (ETPs) to earn staking rewards on digital assets while maintaining their investment or grantor-trust tax status.
Treasury Secretary Scott Bessent described the decision as a “clear path” for trusts to participate in staking without violating tax rules. He added that the new framework benefits investors, encourages innovation, and strengthens the U.S.’s leadership in digital assets and blockchain technology.
Under the guidelines, trusts can stake assets such as Ethereum or other Proof-of-Stake cryptocurrencies without jeopardizing their tax classification. The rules include a “safe harbor” with specific requirements for participation.
According to Bill Hughes, a legal expert at Consensys, trusts must:
- Hold only a single type of digital asset and cash;
- Use a qualified custodian to manage keys and perform staking;
- Maintain SEC-approved liquidity to allow redemptions even for staked assets;
- Keep independent relationships with third-party staking providers;
- Limit activities to custody, staking, and redemption—no speculative trading.
“This safe harbor provides long-awaited tax and regulatory clarity for institutional products like crypto ETFs and trusts, removing a major legal barrier that previously hindered staking integration,” Hughes said.
The new policy is expected to boost participation in staking, improve network liquidity and decentralization, and position staking as a legitimate, conservative profit-generating strategy within U.S. financial products.
Notably, these rules coincide with the launch of the first U.S. spot staking ETFs. On September 25, 2025, REX Shares and Osprey Funds introduced the REX-Osprey ETH Staking ETF (ESK) on the Cboe exchange, allowing shareholders to receive rewards from the trust’s staked assets.
Additionally, Bitwise Asset Management announced that its Solana staking ETF (BSOL) will begin trading on October 28, 2025. On the same day, funds based on Litecoin and Hedera launched via Canary Capital, while Grayscale plans a convertible Solana-based trust.
