U.S. Treasury and IRS Approve Staking in Crypto ETPs, Expanding Access to Rewards for Investors

The U.S. Treasury Department and the Internal Revenue Service (IRS) have issued guidance clarifying staking activities in crypto exchange-traded products (ETPs), marking a significant step towards mainstream adoption of proof-of-stake blockchains. 2025-31 Revenue Procedure, formally approving the practice for trusts holding stakable digital assets like Ethereum and Solana, will allow these funds to distribute rewards without compromising their tax compliance status. This move is expected to benefit both institutional investors and ordinary individuals alike.