What you need to know
What was the new Treasury guidance for?
This allows U.S. crypto ETFs listed on the stock exchanges to stake Proof-of-Stake assets such as Ethereum or Solana, and to distribute staking reward to investors.
Why is this important for the investors and industry?
This level the playing field for ETFs and crypto direct holders. It allows investors to generate passive returns within regulated products.
Treasury and IRS guidance issued on 10th November allowed crypto exchange-traded product. [ETP] Retail investors can stake digital assets to earn rewards.
These rules were published in Revenue Procedure 2025-31 Stop the months-long regulatory uncertainty that has plagued major asset management firms waiting to introduce yield-generating capabilities to their Ethereum ETFs and Solana Solana.
Treasury Secretary Scott Bessent announced It would be helpful to have some guidance. “increase investor benefits, boost innovation, and keep America the global leader in digital asset and blockchain technology.”
How to stake ETFs
Proof-of-stake currencies, like Ethereum You can also find out more about the following: SolanaValidate transactions on the network.
Validators receive rewards for protecting the blockchain. Up until today, U.S. Crypto ETFs were unable to take part in stake, even though direct crypto holders earned these yields.
New guidance has changed this completely. ETFs will now be able stake their ETFs via qualified custodians, such as Coinbase Custody BitGo and Gemini. These operators work in conjunction with validator operators, to receive rewards.
These rewards must be distributed to investors by ETFs at least once a quarter.
The regulated products have a huge advantage. Ethereum ETF owners can earn stake yields by using traditional brokerage accounts, without having to manage validators and private keys.
Finally, after eight-months of waiting the wait is over
The major issues have anticipated this moment in February.
SEC has repeatedly delayed making decisions. They have pushed deadlines back from April, to June and then October.
Asset managers watched with apprehension as their ETFs that do not stake Ethereum underperformed the direct Ethereum investments by the forgone staking return.
Grayscale shareholders approved stake amendments in Septembre, showing investor demand for yield bearing crypto products.
BlackRock’s closed-door meeting with SEC early this year added to the speculation that eventually approval would come.
Timeline and requirements
There are certain requirements that must be met. ETFs are required to trade on the national exchanges and maintain at least 85% liquidity for redemptions. They must also only be staked by unrelated, third party providers.
This guidance prevents trusts from being penalized for losing assets staked by validators due to misconduct.
From today onwards, ETFs that already exist have nine months to change their trust agreements. Ethereum ETFs can start staking as early as mid-2026.
Solana’s ETFs are now able to add stake
Solana ETFs was the latest to be launched, on 28th October. These funds were launched with no staking capability due to regulatory uncertainties.
The guidance provided today provides the framework that these issuers require.
Solana ETFs are now able to amend their trust agreements in the next nine months to allow staking. Investors will be able to access SOL’s increased yields, which range from 5-7% annually.
This guidance represents a major shift in crypto regulations within the United States. Asset managers will be able to finally compete against direct ownership of crypto by offering institutional-grade token staking via traditional investment vehicles.
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Source: ambcrypto.com
