Ethereum, Solana ETFs Get Green Light for Staking via US Treasury, IRS Crypto Fund Guidance

The U.S. Treasury and IRS issued guidance allowing crypto investment trusts to generate staking rewards without tax and regulatory risks. This move is seen as a significant step towards encouraging institutional investment in proof-of-stake blockchains like Ethereum and Solana. Trusts can now enter a safe harbor by meeting specific criteria, which include holding one type of digital asset from a proof-of-stake network and using a custodian for staking. Treasury Secretary Scott Bessent emphasized that this guidance facilitates staking on Wall Street, boosting innovation and maintaining U.S. leadership in digital assets. With this clarity, industry experts anticipate widespread adoption of staking within regulated investment products, addressing previous legal uncertainties surrounding staking rewards, which the SEC had classified as unregistered securities. The announcement potentially opens doors for more Ethereum and Solana staking products in the financial markets.

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