US Treasury Guidance Opens Door for Crypto ETF Staking
The US Treasury Department and the Internal Revenue Service have released new guidance that allows cryptocurrency exchange-traded products to participate in staking while maintaining their tax status. This update, published on November 10 as Revenue Procedure 2025-31, removes a key obstacle that had prevented regulated investment products from earning on-chain returns from proof-of-stake networks such as Ethereum and Solana. 
The guidance provides a safe harbor framework and clarifies how staking rewards should be handled for tax purposes and how issuers can distribute these rewards to investors without triggering tax complications at the corporate level. Under the new rules, exchange-traded spot funds and similar trusts listed on national stock exchanges will be able to pledge their holdings through qualified custodians and pass the pledge premiums on to shareholders.
Key Provisions of the Guidance
Staking activity must be disclosed to investors and products must still only contain cash and a single digital asset to qualify. Staking rewards are taxed as investors’ ordinary income when they gain control of the rewards, rather than at the trust level. This structure maintains the current tax model used by commodity-style crypto ETFs and avoids converting them into mutual fund-like structures. The guidelines also require issuers to publish transparent reports on the distribution of staking revenue and disclose operational risks such as validator performance degradation or “cuts.”
Analysts estimate that Ethereum ETFs could generate annual returns of 3% to 5% under this model, while Solana-based products could be closer to 5% to 7%, depending on network conditions and participation levels. The update could soon allow retail investors to access staking returns through standard ETF broker accounts without the need for self-custody, setting up a validator, or interacting directly with on-chain protocols.
Market Impact and Future Developments
With US-listed cryptocurrency products currently lagging behind structured products in Europe and Asia that already enable staking capabilities, the change could increase their competitiveness for institutions. Industry participants expect ETF issuers such as BlackRock and Fidelity to begin amending their Ethereum ETF prospectuses to include staking, while firms focused on Solana and other networks are working on similar filings. Market observers also expect international impacts, including possible alignment with the EU’s MiCA framework.
The new guidance is a significant development for the crypto industry, providing clarity and regulatory certainty for stakeholders. As the market continues to evolve, it is essential to stay informed about the latest developments and updates. For more information on the US Treasury guidance for crypto ETF staking, visit https://crypto.news/u-s-treasury-guidance-for-crypto-etf-staking-2025/.
