IRS Greenlights Crypto Staking for Wall Street ETFs
The IRS has issued guidance that clears the way for crypto staking in regulated funds. Under the new crypto staking rules, Wall Street ETFs and investment trusts may stake a single proof-of-stake token and distribute staking yields to investors.
Eligible products must be listed on a national exchange, hold only one digital asset, use a qualified custodian and independent staking provider, and apply robust risk controls. The guidance takes effect immediately and covers networks such as Ethereum and Solana. Industry experts say this clarity removes a major legal barrier for ETPs and other institutional vehicles. By boosting staking yields in compliance products, the IRS framework is expected to accelerate mainstream adoption of proof-of-stake blockchains and reinforce US leadership in digital assets.
Bullish
By providing legal and tax clarity for crypto staking, the IRS guidance is expected to unlock new demand from institutional funds and ETFs. In the short term, this may drive increased inflows into proof-of-stake tokens like ETH and SOL as funds seek staking yields. Over the long term, broader adoption of staking strategies by regulated vehicles could support sustained buy-side pressure on these assets, reinforcing bullish market sentiment.