Key Takeaways
What did the U.S. Treasury’s new guidance change?
It officially allows U.S.-listed crypto ETFs to stake proof-of-stake assets like Ethereum and Solana and distribute staking rewards to investors.
Why does this matter for investors and the industry?
It levels the playing field between ETFs and direct crypto holders, enabling investors to earn passive yields within regulated products.
The U.S. Treasury and IRS issued landmark guidance on 10 November, allowing crypto exchange-traded products [ETP] to stake digital assets and share rewards with retail investors.
The safe harbor rules published in Revenue Procedure 2025-31 end months of regulatory uncertainty for major asset managers waiting to add yield-generating features to their Ethereum and Solana ETFs.
Treasury Secretary Scott Bessent announced the guidance would “increase investor benefits, boost innovation, and keep America the global leader in digital asset and blockchain technology.”
Source: X
What staking means for ETF investors
Staking enables proof-of-stake cryptocurrencies, such as Ethereum and Solana, to validate network transactions.
Validators earn rewards for securing the blockchain. Until today, U.S. crypto ETFs have been unable to participate in staking, despite direct crypto holders earning these yields.
The new guidance changes that completely. ETFs can now stake their holdings through qualified custodians like Coinbase Custody, BitGo, or Gemini, who work with validator operators to earn rewards.
The ETFs must distribute these rewards to investors at least quarterly.
This gives regulated products a major advantage. Ethereum ETF holders can now earn staking yields through traditional brokerage accounts without managing validators or private keys themselves.
Eight-month wait finally ends
Major issuers have been anticipating this moment since February.
The SEC repeatedly delayed decisions, pushing deadlines from April to June, then to October.
Asset managers waited anxiously while their non-staking ETFs underperformed direct Ethereum holdings by the foregone staking yield.
Grayscale shareholders approved staking amendments in September, demonstrating investor demand for yield-bearing crypto products.
BlackRock held closed-door meetings with the SEC earlier this year, adding to speculation that approval would eventually come.
Requirements and timeline
The safe harbor includes strict requirements. ETFs must trade on national securities exchanges, maintain 85% liquidity for redemptions, and stake only through unrelated third-party providers at arm’s length terms.
The guidance protects trusts from slashing penalties where validators lose staked assets for misconduct.
Existing ETFs have a nine-month window starting today to amend their trust agreements. This means Ethereum ETFs could begin staking by mid-2026.
Solana ETFs can now add staking
Solana ETFs is the latest, launched on 28 October. However, these funds launched without staking capabilities due to regulatory uncertainty.
Today’s guidance provides the clear framework these issuers need.
The Solana ETFs can now amend their trust agreements within the nine-month window to add staking, offering investors exposure to SOL’s higher yields of approximately 5-7% annually alongside the existing Ethereum funds.
The guidance marks a significant shift in U.S. crypto regulation. Asset managers can finally compete with direct crypto ownership by offering institutional-grade staking through traditional investment vehicles.
