U. S. Makes Crypto Staking Easier for Investors

The U. S. government has made some big moves to make crypto staking more accessible. The Treasury and IRS have just released new rules that let crypto exchange-traded products (ETPs) stake digital assets and share the rewards with investors. This is a huge deal because it removes a big regulatory hurdle that was holding back investment in crypto. Before this, there was a lot of uncertainty around staking and taxes. The IRS has now created a safe harbor framework that allows trusts to stake digital assets without losing their tax status. This means that crypto ETPs that track proof-of-stake assets like Ethereum, Cardano, and Solana can now stake directly and distribute the rewards to investors in a way that follows tax rules. Treasury Secretary Scott Bessent said this move will boost innovation and keep the U. S. ahead in digital asset and blockchain technology. Industry leaders are calling it a "major win" for crypto funds. They believe this could lead to more staking participation, better liquidity, and more decentralization in networks. This new guidance builds on earlier rules about how staking rewards are taxed. It also follows a clarification from the SEC that protocol-level staking doesn't violate securities law. Bill Hughes, a senior counsel at Consensys, said this is a "major legal breakthrough" for the sector. Fund managers think this could speed up the development of new products in both traditional and digital asset markets. The Treasury's move comes after the SEC clarified liquid staking rules in August. The SEC said that protocol-level staking and "staking receipt tokens" are not under their jurisdiction unless they are part of an investment contract. This clarification was praised by big names in the crypto world and was seen as a big step forward for innovation. Now, the Treasury and IRS have opened the door even wider for regulated staking.