U.S. Treasury Clears Path for Crypto ETFs to Stake and Generate Yield

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TLDRThe U.S. Treasury and IRS have issued new guidance allowing crypto ETFs to stake digital assets.Crypto ETFs can now share staking rewards with retail investors while complying with tax regulations.Treasury Secretary Scott Bessent emphasized that the guidance provides a clear path for staking participation.The guidance allows crypto ETFs to receive staking rewards through blockchain network platforms.Legal experts believe this decision creates a safe harbor and ensures tax transparency for crypto ETF investors.The U.S. Treasury and the IRS have issued new guidance allowing crypto exchange-traded funds (ETFs) to stake digital assets. This update provides a clear framework for these funds to share staking rewards with retail investors. The move marks a significant shift in regulatory policy for the digital asset sector.Treasury Secretary Bessent Announces Staking GuidanceIn a statement on X, Treasury Secretary Scott Bessent highlighted the new guidance for crypto ETFs. He emphasized that it creates “a clear path” for these funds to engage in staking. Bessent also noted the move will enhance investor benefits while complying with tax and financial regulations.Today @USTreasury and the @IRSnews issued new guidance giving crypto exchange-traded products (ETPs) a clear path to stake digital assets and share staking rewards with their retail investors. This move increases investor benefits, boosts innovation, and keeps America the…— Treasury Secretary Scott Bessent (@SecScottBessent) November 10, 2025The guidance will allow crypto ETFs to receive staking rewards through blockchain network platforms. Bessent’s announcement is expected to strengthen America’s position as a global leader in blockchain technology. The Treasury’s decision is seen as a vital step for the digital asset ecosystem.Legal Experts See Opportunity for Crypto ETFsGreg Xethalis, General Counsel at Multicoin Capital, welcomed the new policy. He described it as a “safe harbor” that gives crypto ETFs a clear transition period for staking digital assets. Xethalis also stressed that this change addresses complex structural issues surrounding crypto-based investment products.The update allows these funds to maintain their grantor trust status while staking. This ensures tax transparency, a crucial factor for investors in the crypto space. It also provides clarity for crypto ETF issuers, particularly for Bitcoin and Ethereum funds seeking to engage in staking and yield generation.Crypto ETFs are expected to attract more interest from retail investors following this regulatory shift. The new guidelines may pave the way for a broader adoption of staking among digital asset ETFs.The post U.S. Treasury Clears Path for Crypto ETFs to Stake and Generate Yield appeared first on Blockonomi.