IRS issues new guidance allowing crypto ETPs to stake digital assets

PANews reported on November 11 that according to The Block, the United States Internal Revenue Service issued new guidance to establish a safe harbor for exchange-traded products (ETPs) to pledge digital assets. Cryptocurrency proponents say this changes the tax treatment of traditional finance. On Monday, U.S. Treasury Secretary Scott Bessent announced the news on the

The IRS said it received questions about whether the pledge would render the trust "ineligible for federal income tax purposes," and the newly released 18-page guidance includes safe harbor provisions and requirements. Bill Hughes, senior legal counsel at Consensys, said that trusts that meet certain conditions (such as holding only one digital asset and cash, using qualified custodians, etc.) can pledge cryptocurrencies on a permissionless proof-of-stake network. This safe harbor provides clear guidance for institutions and accelerates the popularity of proof-of-stake blockchains in the mainstream market.

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