IRS Clears Crypto Trusts to Stake Assets Without Losing Key Tax Status - Bitcoin Foundation

The IRS has clarified that cryptocurrency trusts can stake their digital assets without jeopardizing a key tax status, according to the Bitcoin Foundation. The guidance addresses a long-standing uncertainty for trusts holding proof-of-stake assets such as ether and solana, where staking rewards are generated by locking tokens to help secure a blockchain network.

The core issue was whether staking activity could be considered an active trade or business, which might conflict with the tax treatment trusts rely on. By removing that ambiguity, the clarification may encourage more institutional and trust-based holders to participate in staking rather than leave assets idle. That could affect staking yields, network participation rates, and the supply of tokens available on exchanges.

For observers, the key question is how broadly the guidance applies and whether it prompts similar clarity from other regulators. The development matters less as a price signal than as a structural one: it reduces a compliance risk that may have deterred certain holders from putting assets to work.