Ethereum News Today: Unlocking PoS Potential: Regulators Clear Staking Path for ETPs

The U.S. Treasury and Internal Revenue Service (IRS) have issued groundbreaking guidance enabling cryptocurrency exchange-traded products (ETPs) to stake digital assets like Ethereum and Solana without triggering tax or regulatory complications, marking a pivotal step toward mainstream adoption of proof-of-stake (PoS) blockchains. The safe harbor framework, announced November 10, 2025, provides clarity for institutional investors and fund sponsors, allowing ETPs to generate staking rewards for retail investors while adhering to federal compliance standards Ethereum, Solana ETFs Get Green Light for Staking via US Treasury, IRS Crypto Fund Guidance.

Under the guidance, eligible ETPs must hold only one type of digital asset from a permissionless PoS network, operate on a national securities exchange, and engage qualified custodians and independent staking providers. These trusts must also avoid discretionary trading and maintain liquidity protocols to ensure redemptions remain possible even when assets are staked IRS Guidance May Enable Staking in Crypto Exchange-Traded Products. Treasury Secretary Scott Bessent emphasized the move would "increase investor benefits, boost innovation, and keep America the global leader in digital asset technology" Ethereum, Solana ETFs Get Green Light for Staking via US Treasury, IRS Crypto Fund Guidance.

The development addresses long-standing regulatory ambiguities that had deterred traditional finance (TradFi) institutions from integrating staking into their offerings. Staking—where investors lock tokens to validate blockchain transactions in exchange for rewards—has typically yielded annual returns between 1.8% and 7%, depending on the network. For Ethereum, staking yields averaged 2.98% over the past six months, according to Grayscale research, while Solana's rewards range from 4% to 8% US Treasury and IRS Open Safe Harbor for Crypto Staking in ETFs. By codifying a compliant pathway, the IRS and Treasury aim to channel more institutional capital into PoS networks, enhancing their security and decentralization.

Industry leaders hailed the guidance as transformative. Bill Hughes, head of global regulation at Consensys, noted it "removes a major legal barrier" for fund sponsors and custodians, enabling them to offer staking yields without fear of regulatory pushback Ethereum, Solana ETFs Get Green Light for Staking via US Treasury, IRS Crypto Fund Guidance. The move also aligns with the Securities and Exchange Commission's (SEC) recent approval of generic listing standards for crypto ETPs, creating a cohesive regulatory environment for these products US opens door for crypto ETFs, trusts to earn staking rewards.

From a tax perspective, staking rewards will be treated as taxable income for the trust at the time of receipt, with investors receiving pass-through benefits based on their ownership stakes. This mirrors existing IRS rules for cryptocurrency taxation, which classify digital assets as property subject to capital gains and ordinary income rules IRS Guidance May Enable Staking in Crypto Exchange-Traded Products. Retail investors now gain access to yield-generating opportunities without directly managing blockchain protocols, a shift analysts predict will accelerate adoption of PoS assets.

The timing of the guidance, released amid discussions to end a 40-day government shutdown, underscores the administration's prioritization of crypto policy. While the shutdown furloughed staff at agencies like the IRS and SEC, the Treasury's proactive release highlights its commitment to fostering innovation in digital assets IRS Guidance May Enable Staking in Crypto Exchange-Traded Products.

With the regulatory hurdles cleared, experts anticipate a surge in staking-enabled ETPs, including products like REXShares' Ethereum Staking ETF, launched in September 2025. Such offerings could further solidify the U.S.'s role as a global leader in crypto innovation, attracting both retail and institutional capital to PoS ecosystems US Treasury and IRS Open Safe Harbor for Crypto Staking in ETFs.