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News

Scott Bessent Says Treasury, IRS Guidance 'Keeps America The Global Leader' In Crypto

Author: Parshwa Turakhiya | November 11, 2025 10:44am

The U.S. Treasury and IRS have issued new guidance giving crypto ETPs a clear path to stake digital assets and share rewards with investors, removing a major regulatory barrier.

IRS Issues Safe Harbor for Staking Within Regulated Products

The IRS on Monday released a safe harbor framework that permits trusts to stake digital assets. 

The rule ensures they can do so without losing their tax status as investment or grantor trusts, removing a long-standing barrier that discouraged fund sponsors from adding staking yield to regulated investment products.

Under the new policy, crypto ETPs tracking proof-of-stake assets such as Ethereum (CRYPTO: ETH), Cardano (CRYPTO: ADA), or Solana (CRYPTO: SOL) can now stake directly.

They may distribute resulting rewards to investors in a clear, tax-compliant framework.

Treasury Secretary Scott Bessent said the move "gives crypto ETPs a clear path to stake and share rewards."

He added that it "boosts innovation and keeps America the global leader in digital asset and blockchain technology."

Industry Leaders Call It a "Major Win" for Crypto Funds

The new guidance builds on Revenue Ruling 2023-14, which outlined how staking rewards are taxed. 

It also follows earlier clarification from the SEC that protocol-level staking does not violate securities law.

Bill Hughes, senior counsel at Consensys, called it "a major legal breakthrough" for the sector, saying regulated entities can now stake on behalf of investors.

That could increase staking participation, liquidity, and network decentralization.

Fund managers believe the decision could accelerate new product development in traditional and digital asset markets.

"It effectively removes the largest tax uncertainty around staking," said one fund sponsor.

"We're now exploring yield models within spot ETPs sooner than expected," the sponsor added.

Building on SEC's Liquid Staking Clarification

The Treasury move follows an SEC statement from August that clarified liquid staking rules. 

The SEC said that protocol-level staking and "staking receipt tokens" fall outside its jurisdiction. They only apply if linked to an investment contract.

That clarification, praised by a16z and Paradigm, was seen as a "huge win for innovation,” opening the door for regulated staking integration.

The Treasury and IRS have now pushed that door fully open.

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Image: Shutterstock

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