TLDR
- The US Treasury Department and the IRS have issued new guidelines allowing crypto ETFs to stake digital assets.
- Crypto ETFs can now share stake rewards with retail investors while complying with tax regulations.
- Finance Minister Scott Bessent emphasized that the guidance provides a clear path for effort participation.
- The guidance allows crypto ETFs to receive stake rewards through blockchain network platforms.
- Legal experts believe this decision creates a safe harbor and ensures tax transparency for investors in crypto ETFs.
The United States Department of the Treasury and the IRS has issued new guidelines allowing crypto exchange-traded funds (ETFs) to invest in digital assets. This update provides a clear framework for these funds to share stake rewards with retail investors. The move marks a significant shift in regulatory policy for the digital asset sector.
Finance Secretary Bessent announces investment guidance
In one statement on XTreasury 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 that the move will improve investor benefits while complying with tax and financial regulations.
The guidance will allow crypto ETFs to receive stake rewards through blockchain network platforms. Bessent’s announcement is expected to strengthen America’s position as a global leader in blockchain technology. The Finance Ministry’s decision is seen as an important step for the digital asset ecosystem.
Legal experts See opportunity for crypto ETFs
Greg Xethalis, General Counsel at Multicoin Capital, welcomed the new policy. He described it as a “safe haven” that gives crypto ETFs a clear transition period to bet digital assets. Xethalis also emphasized that this change addresses complex structural issues around crypto-based investment products.
The update allows these funds to maintain their authorization status when betting. This ensures tax transparency, a crucial factor for investors in the crypto space. It also provides clarity for issuers of crypto ETFs, particularly for Bitcoin and Ethereum funds that seek to engage in stakes and the generation of returns.
Crypto ETFs are expected to attract more interest from retail investors following this rule change. The new guidelines could pave the way for wider use of stakes among digital asset ETFs.
