The US gives the green light to crypto ETFs, and the Trust fund participates in Staking. Photo: Decrypt
IRS paves the way for crypto Staking ETFs
- The Internal Revenue Service (IRS) has just published Revenue Procedure 2025-31, an 18-page guide that opens a clear legal door for cryptocurrency exchange-traded products (ETPs)/ETFs and Trusts participating in digital asset Staking . Treasury Secretary Scott Bessent also confirmed on X.
Today @USTreasury and the @IRSnews issued new guidance giving crypto exchange-traded products (ETPs) a clear path to Stake digital assets and sharing Staking rewards with their retail investors.
— Treasury Secretary Scott Bessent (@SecScottBessent) November 10, 2025
This move increases investor benefits, boosts innovation, and keeps America the…
- This is an important turning point, as Staking was previously considered a legal risk, especially for managed funds due to unclear tax regulations and securities concerns.
- This guidance answers questions about whether Staking would cause funds to lose their federal tax status or be treated as securities, and creates a safe harbor that would allow the Trust to engage in Staking while remaining in compliance with the law. In May, the Securities and Exchange Commission (SEC) also recognized that Staking does not violate securities laws.
Accordingly, Trust funds wishing to Staking must meet the following requirements:
Trading on the national stock exchange, ensuring transparency and compliance with supervision regulations.
Holding only one type of digital asset and cash helps manage risk but limits Token diversification.
Use a qualified, legal custody platform responsible for asset management and Staking.
Participate in permissionless Proof-of Stake network (permissionless PoS), avoid funds being considered as securities transactions.
Minimize risks to investors, including Slashing, loss of rewards, or operational errors.
- These requirements are strict, but in return, the Trust can Staking legally without worrying about the IRS mistaxing or breaking the law.
Impact on market and investors
- Bill Hughes, senior attorney at ConsenSys, commented: “The new guidance provides legal and tax clarity that organizations like crypto ETFs and Trusts have been waiting for. Previously, large regulatory hurdles made fund managers, custodians, and asset managers hesitant to integrate Staking returns into regulated products.”
Under the safe harbor that @SecScottBessent announces below, trusts may Stake digital assets (on permissionless proof-of- Stake networks) if they:
— Bill Hughes 🦊 (@BillHughesDC) November 10, 2025
1) Hold only one digital asset type and cash;
2) Use a qualified Custodian to manage keys and execute Staking;
3) Maintain… https://t.co/husxmIpAs6
- This guide transforms Staking from a legal risk into a legal, tax-recognized, and organizationally viable activity, paving the way for widespread adoption on major Proof-of- Stake blockchains like Ethereum, Solana, and Avalanche. Trusts that previously only expected Token price appreciation can now generate additional income from Staking yield, opening up a new asset class for investors.
- The IRS guidance was released after the SEC approved an accelerated crypto ETF approval process (September 2025). The IRS and Treasury noted the SEC’s changes, which align securities regulations and tax guidance, leading to today’s decision.
- To date, the US government has been shut down for more than 40 days, starting from October 1, 2025, forcing many agencies, including the SEC and IRS, to take unpaid leave. In this context, the US Senate last night passed a budget bill to end the above stagnation, with a ratio of 60-40. The next step is for the House of Representatives to vote. If the House of Representatives passes, the bill will be signed into law by President Trump, officially reopening the government.
- The fact that the IRS is still issuing Staking guidance during the shutdown may partly reflect that cryptocurrencies and blockchain remain a strategic priority for the US, despite the tense political and financial situation.
- At the same time as the IRS, the US Senate has also just announced a draft of a new legal framework for the crypto market, aiming to clearly define the authority between the SEC and CFTC, determine which digital assets are under the management of each agency, and at the same time strengthen investor protection. This draft, built on a bipartisan basis, marks an important step in legalizing and making transparent crypto activities organized in the US, creating a premise to synchronize with the tax regulations and Staking guidelines just announced by the IRS.
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