Key Takeaways
- The U.S. Treasury and IRS have officially approved staking-as-a-service for crypto ETFs.
- The ruling allows fund managers holding PoS tokens such as Ethereum and Solana to stake and share rewards.
- Analysts say the move could attract between $3 billion and $6 billion in inflows to PoS networks.
After years of uncertainty and lobbying, U.S. regulators have finally given the green light for staking-as-a-service within crypto exchange-traded products (ETPs).
The new guidance from the Treasury and Internal Revenue Service (IRS) formally establishes a path for regulated funds to stake eligible proof-of-stake (PoS) assets like Ethereum (ETH) and Solana (SOL), distributing staking rewards directly to investors.
The rule, published as Revenue Procedure 2025-3, provides long-overdue clarity on how staking will be treated for tax and regulatory purposes — a key hurdle that kept U.S. fund managers from offering the service.
It’s a development that could reshape crypto investment products and, according to market analysts, bring billions of dollars in new inflows to staking-based tokens.
What the Treasury’s Guidance on Staking Allows
Under the guidance, crypto ETFs and trusts can now stake eligible PoS assets — such as ETH, SOL, ADA, and AVAX — and distribute staking rewards directly to shareholders.
Treasury Secretary Scott Bessent added that the decision “keeps America the global leader in digital asset and blockchain technology.”
To qualify, managers must:
- Hold only one digital asset type and cash;
- Use qualified custodians for staking and key management;
- Maintain liquidity standards that allow for investor redemptions even when assets are staked;
- Work with independent, third-party staking providers; and
- Limit activity to holding, staking, and redeeming assets — without discretionary trading.
This structure creates a compliant safe harbor for staking activity within exchange-traded funds, effectively bridging the gap between decentralized blockchain validation and traditional finance.
The move follows earlier regulatory milestones, such as the SEC’s September 2025 listing rules for crypto ETFs and clarifications that certain liquid staking operations do not constitute unregistered securities.
From Caution to Confidence in Crypto Staking
Before this ruling, U.S. fund managers avoided staking due to a lack of clarity around tax implications, yield distribution, and classification under securities law.
By addressing these gray areas, the Treasury and IRS have provided the kind of policy certainty institutions have been waiting for — giving ETFs holding assets like ETH and SOL the ability to function as competitive, yield-bearing instruments.
Retail and institutional investors can now earn 3–4% annual rewards on ETH and 6–7% on SOL through ETFs, without needing to directly manage wallets or validator nodes.
Analysts estimate that these newly compliant structures could draw $3 billion to $6 billion in inflows over the next year, as investors seek exposure to staking rewards within regulated environments.
Policy Clarity After Political Turmoil
The Treasury’s announcement also arrives just days after the end of the historic 40-day U.S. government shutdown, the longest in American history.
During the shutdown, key agencies such as the SEC and CFTC operated on skeleton crews, which delayed numerous crypto-related bills and economic data releases.
With no inflation, jobs, or growth figures available, the Federal Reserve’s next rate decision now hinges on conviction rather than data — a rare scenario in U.S. monetary history.
Against this backdrop, the Treasury’s move marks one of the first major regulatory actions since the government’s reopening, signaling a return to policy momentum for digital assets.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
