The US Department of the Treasury and the Internal Revenue Service (IRS) have issued new guidelines allowing crypto ETFs and trust funds to validate digital assets such as Proof-of-Stake (PoS) tokens and distribute staking rewards to investors.
The new Revenue Procedure 2025-31 enables regulated investment vehicles such as ETFs to stake crypto assets and distribute the resulting returns in a manner that is fully compliant with tax and supervisory regulations. This removes longstanding uncertainty regarding the tax treatment and compliance framework for staking products.
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Staking authorization for ETFs
The regulation specifies that investment funds or trust structures may stake digital assets under certain conditions. A licensed custodian must be involved, the product may hold only one type of asset and cash, and redemption rights must remain fully guaranteed even when assets are locked in staking.
Treasury Secretary Scott Bessent described the procedure as a milestone for innovation. He said the decision strengthens America’s leadership in digital assets and, for the first time, allows institutional investors to earn structured returns from blockchain networks.
For PoS networks such as Ethereum or Solana, this represents a new regulatory and legal dimension. Staking returns are thus evolving from a niche activity into an approved investment model within the traditional financial sector.
Legal framework and market impact
Revenue Procedure 2025-31 takes effect on January 1, 2026, and applies to all investment vehicles regulated under the Investment Company Act of 1940. For the first time, US-based spot ETFs on Proof-of-Stake assets - such as Ethereum, Solana, or Cardano - will be able to actively stake their tokens without being classified as “engaged in business” for tax purposes. For funds, this means staking rewards will now be treated as regular capital gains rather than unrealized income.
This regulatory opening could trigger a significant capital inflow into staking products as investment vehicles begin systematically capturing returns from digital networks. As a result, staking is shifting from a speculative activity to a yield-generating opportunity for institutional investors. However, effective oversight and enforcement will remain crucial to ensure the model operates without regulatory or operational risks.
