Catenaa, Monday, November 10, 2025- The US Internal Revenue Service has issued new guidance creating a “safe harbor” for exchange-traded products that stake digital assets, a move expected to reshape institutional crypto participation.
The 18-page directive, announced Monday by Treasury Secretary Scott Bessent on X, allows crypto-based exchange-traded products and trusts to stake assets on permissionless proof-of-stake networks without losing their tax-qualified status. The decision comes months after the Securities and Exchange Commission clarified that staking does not amount to a securities transaction.
Under the IRS framework, eligible trusts must hold a single type of digital asset and cash, use a qualified custodian, and meet other compliance conditions. The guidance, referred to as Revenue Procedure 2025-31, aims to give traditional financial products regulatory certainty to share staking rewards with retail investors.
Bessent said the move will “boost innovation and maintain US leadership in digital assets and blockchain.” Crypto industry leaders called the announcement a landmark in bridging decentralized finance with traditional investment vehicles.
Bill Hughes, senior counsel at Consensys, said the safe harbor will “significantly expand staking adoption,” turning it from a compliance risk into a tax-recognized institutional activity. Analysts expect the ruling to encourage more crypto ETFs and funds to include staking in their operations, increasing yield opportunities for investors and liquidity across blockchain networks.
IRS guidance allows US crypto ETFs to stake digital assets under a new safe harbor, giving tax clarity and boosting institutional blockchain adoption.
