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

The U.S. Treasury and IRS have issued new guidance allowing crypto ETFs to generate staking rewards for investors, a move expected to enhance mainstream adoption of proof-of-stake blockchains, particularly Ethereum and Solana. This guidance creates a safe harbor for investment trusts to engage in staking without regulatory risks, providing a clear path for institutional participation. To qualify, trusts must adhere to specific criteria, such as holding a single digital asset from a proof-of-stake network and relying on custodians for staking. Treasury Secretary Scott Bessent emphasized the benefits for investor participation and innovation in the digital asset space. This policy change addresses previous legal uncertainties surrounding staking rewards, which had deterred funds from integrating these yields into regulated products. The announcement signifies a significant step towards mainstream acceptance of staking in traditional finance.

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