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

The U.S. Treasury and IRS released new guidance that allows Wall Street crypto products to generate staking yields for investors, significantly easing institutional participation in staking assets like Ethereum and Solana. This guidance creates a 'safe harbor' for investment trusts to stake digital assets without regulatory risks, provided they meet specific criteria such as holding one type of digital asset from a permissionless, proof-of-stake blockchain and engaging a custodian for staking. Treasury Secretary Scott Bessent praised the move, stating it enhances investor benefits and promotes innovation while securing America's leadership in blockchain technology. By removing legal barriers that deterred fund sponsors from integrating staking yields, this policy is expected to lead to mainstream adoption of proof-of-stake blockchains on Wall Street. Industry experts anticipate a substantial increase in staking activities following this clarification, particularly for ETFs, which can now offer staking to their holders without the previous concerns over regulatory compliance or tax implications.

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