IRS Staking Guidance Reveals Critical Caveats for Crypto ETFs

IRS Staking Guidance Reveals Critical Caveats for Crypto ETFs

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The IRS's new guidance on crypto ETF staking, while potentially opening new avenues, comes with significant overlooked details, as highlighted by analyst Greg Xethalis. These include restrictions on single-asset staking, ambiguities surrounding slashing liability, and specific limits on private trusts. These intricate nuances will be crucial in determining how institutions structure staking-enabled funds to ensure compliance with existing grantor trust rules.

The IRS’s new staking guidance opens the door for ETFs but with critical caveats. Analyst Greg Xethalis highlights three overlooked details: single-asset restrictions, slashing liability ambiguity, and limits on private trusts. These nuances will shape how institutions structure staking-enabled funds while staying compliant with grantor trust rules.