The United States Department of the Treasury and the Internal Revenue Service (IRS) have issued new guidance allowing crypto exchange-traded products (ETPs) to stake digital assets and share staking rewards with retail investors, according to Treasury Secretary Scott Bessent.
"This move increases investor benefits, boosts innovation, and keeps America the global leader in digital asset and blockchain technology," Bessent wrote on X.
The policy provides long-awaited clarity for fund issuers looking to integrate staking into regulated investment products.
This new Treasury and IRS rules apply to crypto ETPs that hold or track major digital assets such as Ethereum (ETH), Cardano (ADA), Solana (SOL) - or any other token that can be staked and meets regulatory standards.
It builds on Revenue Ruling 2023-14 , which outlined how staking rewards are taxed, marking another key step in the Trump administration's evolving crypto policy.
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What are crypto ETPs and how does staking work?
Crypto ETPs are regulated investment vehicles - similar to exchange-traded funds (ETFs) - that let investors gain exposure to digital assets without holding them directly. They trade on traditional stock exchanges and are often backed 1:1 by crypto held in custody.
Staking, meanwhile, is the process of locking up digital assets on a blockchain to help validate transactions in return for periodic rewards, typically paid in the same token. It's a key feature of proof-of-stake (PoS) blockchains like Ethereum, allowing holders to earn passive income while supporting network security.
Related: Exclusive: SEC Commissioner Peirce says new crypto ETP rules aim to cut 'chaos'
With this new guidance, crypto ETPs can now stake eligible digital assets directly on PoS networks and distribute the resulting rewards to investors, all within a clear, regulated, and tax-compliant framework.
SEC's guideline on liquid staking
The Treasury's move comes three months after the Securities and Exchange Commission (SEC) clarified that certain liquid staking activities do not constitute the sale of securities.
The SEC's August 2025 statement confirmed that protocol-level staking and the minting of "staking receipt tokens" fall outside its jurisdiction unless linked to an investment contract.
Industry leaders including a16z and Paradigm hailed the clarification as a "huge win" for crypto innovation, saying it opened the door for staking integration within regulated funds; a door that the Treasury and IRS have now pushed wide open.
This story was originally reported by TheStreet on Nov 10, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
