**U.S. Treasury, IRS Approve Crypto ETFs Staking Guidance**
The U.S. Treasury and the Internal Revenue Service (IRS) have issued new guidance that allows crypto exchange-traded funds (ETFs) to stake digital assets and share staking rewards with retail investors. This marks a significant regulatory breakthrough for the digital asset sector.
### Treasury Guidance Gives Crypto ETFs Clear Staking Framework
The announcement was made by Treasury Secretary Scott Bessent, who described the guidance as providing “a clear path” for crypto ETFs to participate in staking. In a statement posted on X, Bessent said:
> “Today @USTreasury and the @IRSnews issued new guidance giving crypto exchange-traded products (ETPs) a clear path to stake digital assets and share staking rewards with their retail investors. This move increases investor benefits, boosts innovation, and keeps America the…”
The guidance ensures that crypto ETFs can maintain compliance with existing tax and financial regulations while engaging in staking activities. Secretary Bessent added that this move will enhance investor benefits, drive innovation, and strengthen America’s position as a global leader in digital asset and blockchain technology.
### Foundation for Staking Rewards and Growing Investor Interest
The new rules lay a foundation for crypto ETFs to receive staking rewards through blockchain platforms. Staking of crypto products, including the recently launched mXRP vault, has attracted significant investor attention. The mXRP vault generated over $22 million in investments on its first day, highlighting strong market interest.
Previously, there were limitations on how sponsors could exercise discretion over digital assets held in trust, which restricted staking opportunities.
### New Rules to Spur U.S. Crypto Staking Boom
Greg Xethalis, General Counsel at Multicoin Capital, explained that the guidance creates a “safe harbor” and transition period for crypto ETF trusts. This allows them to stake digital assets without losing their grantor trust status, a critical legal classification that ensures tax transparency for investors.
According to Xethalis, this change resolves longstanding legal uncertainties and paves the way for expanded staking activities within U.S.-based crypto ETFs.
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This new regulatory clarity is expected to drive innovation and growth in the U.S. crypto ETF market, offering investors greater opportunities to benefit from digital asset staking rewards.
https://bitcoinethereumnews.com/crypto/u-s-treasury-irs-approve-crypto-etfs-staking-guidance/
