The U.S. Treasury and IRS have introduced new regulations allowing crypto exchange-traded products (ETPs) to legally stake digital assets and distribute rewards to investors.
The U.S. Treasury Department and the Internal Revenue Service (IRS) have issued a landmark ruling for the crypto industry, providing a legal pathway for crypto exchange-traded products (ETPs) to stake their digital assets and share the resulting rewards with investors.
According to the guidance, funds operating under the defined “safe harbor” must hold only a single digital asset and cash, work with licensed custodians, maintain an SEC-approved liquidity plan, and engage independent staking providers under transparent agreements. Their activities will be strictly limited to holding, staking, and redemption.
Treasury Secretary Scott Bessent said the move “offers a clear path for crypto ETPs to stake assets and share rewards with investors,” emphasizing that the policy will “enhance investor benefit, foster innovation, and strengthen the U.S.’s leadership in digital asset technology.” Consensys legal advisor Bill Hughes noted that the ruling removes a major barrier for fund managers who previously avoided staking due to tax uncertainty.
Analysts say this marks the start of a new era for proof-of-stake-based crypto funds, particularly those tied to networks like Ethereum. ETPs that previously avoided staking due to regulatory risk can now generate and distribute yields within a legal framework—potentially boosting U.S. crypto product growth and on-chain participation.
