IRS Rev. Proc.: Safe Harbor for Digital Asset Staking by Investment Trusts, Grantor Trusts (IRC §671, §677)

The IRS established a safe harbor allowing trusts that hold digital assets and qualify as investment trusts under Treas. Reg. §301.7701-4(c) and as grantor trusts under I.R.C. §671 and §677 to engage in staking activities without jeopardizing their tax classification. The safe harbor applies to trusts whose interests are traded on national securities exchanges and that meet specific requirements, including SEC compliance, holding only a single type of digital asset using proof-of-stake consensus mechanisms, using qualified custodians, maintaining liquidity reserves, and distributing staking rewards at least quarterly. Existing trusts have nine months beginning Nov. 10, 2025, to amend their governing ...