Ethereum News Today: Regulators unlock staking yields for investors via crypto ETFs

The U.S. Treasury Department and the Internal Revenue Service (IRS) have issued groundbreaking guidance that could reshape the cryptocurrency landscape by enabling staking yields for Ethereum (ETH) and Solana (SOL) through exchange-traded funds (ETFs). The move, announced Monday, creates a regulatory "safe harbor" for institutional investment vehicles to stake digital assets without fear of violating tax or securities laws, provided they meet specific criteria such as holding a single proof-of-stake (PoS) token and using independent custodians and staking providers. This development marks a pivotal shift in mainstream adoption for PoS blockchains, which rely on token holders to secure networks in exchange for rewards ranging from 1.8% to 7% annually.

The guidance addresses long-standing uncertainties about the legal status of staking rewards, which the Securities and Exchange Commission (SEC) had previously hinted could be classified as unregistered securities under certain interpretations. By clarifying that staking is a permissible activity for investment trusts, the Treasury and IRS have opened the door for Wall Street to integrate staking into ETF products. Grayscale, for instance, became the first U.S. ETF issuer to offer Ethereum staking rewards to investors in October 2025. The new framework is expected to spur a wave of similar offerings, particularly as institutional demand for yield-generating crypto assets grows.

Ethereum's staking yield has averaged 2.98% over the past six months, while Solana's typically ranges between 4% and 8%. These rates could now be embedded into ETFs, transforming staking from a niche activity into a standardized financial product. REXShares' Ethereum Staking ETF, launched in September 2025, has already demonstrated strong investor appetite, suggesting that staking-enabled ETFs could become a staple of institutional portfolios. For retail investors, the move offers a compliant way to earn passive income on crypto holdings, potentially boosting demand for ETH and SOL.

Market dynamics also point to Ethereum's potential for a bullish turnaround. Bitcoin (BTC) has rebounded above $104,000 amid a surge in ETF inflows, with U.S.-listed Bitcoin ETFs recording over $523 million in inflows on Tuesday alone. While Ethereum ETFs have lagged, recording $107 million in outflows on Tuesday, the broader trend suggests a recovery is on the horizon. Ethereum's price currently hovers above $3,400, supported by technical indicators like the Moving Average Convergence Divergence (MACD) and a rebound in the Relative Strength Index (RSI). A breakout above the 200-day exponential moving average at $3,870 could further validate the uptrend.

The regulatory clarity and market conditions align with a broader narrative of crypto's integration into traditional finance. Treasury Secretary Scott Bessent emphasized that the guidance "keeps America the global leader in digital asset and blockchain technology" and enhances investor benefits. Meanwhile, industry surveys by EY and Amundi highlight that regulatory ambiguity and custody frameworks were top barriers to institutional adoption - issues now addressed by the new policy.

As the U.S. becomes the first major jurisdiction to codify staking into a compliant financial framework, capital inflows into PoS ecosystems could accelerate. This would not only strengthen network security and decentralization but also bolster investor confidence in crypto as a mainstream asset class. With Ethereum's technical indicators and regulatory tailwinds in sync, the stage is set for a potential bullish run before 2025 ends.