The U.S. Treasury’s new guidance on crypto ETF staking allows U.S.-listed exchange-traded products to stake proof-of-stake assets like Ethereum and Solana, enabling investors to earn rewards through regulated funds. This ends regulatory uncertainty and boosts yields for retail participants in a secure manner.
U.S. Treasury issues safe harbor rules for crypto ETF staking, targeting Ethereum and Solana assets.
The guidance resolves eight months of delays, allowing ETFs to distribute staking rewards quarterly to investors.
ETFs must use qualified custodians and maintain high liquidity, with implementation possible by mid-2026; this could yield 5-7% annually for Solana holders.
U.S. Treasury crypto ETF staking guidance revolutionizes investment options for Ethereum and Solana holders. Discover how this safe harbor boosts yields and innovation—explore now for passive income opportunities in regulated products.
What is the U.S. Treasury’s new guidance on crypto ETF staking?
U.S. Treasury crypto ETF staking guidance represents a pivotal regulatory update issued by the U.S. Treasury and IRS on November 10, 2025, outlined in Revenue Procedure 2025-31. This safe harbor provision permits U.S.-listed cryptocurrency exchange-traded products, or ETPs, to engage in staking activities for proof-of-stake digital assets such as Ethereum and Solana. It enables these funds to earn and distribute staking rewards to investors, addressing prior restrictions that prevented yield generation in regulated vehicles.
How will this guidance impact Ethereum and Solana ETF investors?
Staking involves locking proof-of-stake cryptocurrencies to validate blockchain transactions, rewarding participants for network security. Under the new rules, Ethereum ETFs, which hold significant assets, can now stake through third-party custodians like Coinbase Custody or BitGo, passing rewards to shareholders at least quarterly. This could add approximately 3-5% annual yields for Ethereum holders, based on current network rates reported by blockchain analytics firms. For Solana ETFs, recently launched on October 28, 2025, the guidance unlocks potential 5-7% yields, making these funds more competitive with direct ownership. Industry experts, including those from major asset managers, note that this levels the playing field, reducing the opportunity cost for investors using traditional brokerage accounts. The requirements ensure safety: funds must trade on national exchanges, hold 85% liquidity for redemptions, and avoid direct validator risks like slashing penalties. As a result, retail investors gain access to passive income without technical complexities, fostering broader adoption of digital assets in mainstream finance.
Frequently Asked Questions
Can existing Ethereum ETFs start staking under the new U.S. Treasury guidance?
Yes, existing Ethereum ETFs can amend their trust agreements within nine months of the guidance’s issuance on November 10, 2025, to incorporate staking. This process involves partnering with qualified custodians to secure assets and distribute rewards, ensuring compliance with liquidity and arm’s-length transaction rules as specified in Revenue Procedure 2025-31.
What are the staking yield expectations for Solana ETFs following this regulatory change?
Solana ETFs can now pursue staking to offer investors yields around 5-7% annually, drawing from the network’s current reward structure for validators. This development, enabled by the U.S. Treasury’s safe harbor, allows seamless integration into regulated products, providing a straightforward way for voice-activated queries like “How to earn Solana staking rewards through ETFs?” to yield practical, accessible answers for everyday investors.
Key Takeaways
- U.S. Treasury’s crypto ETF staking approval: Ends regulatory hurdles, permitting Ethereum and Solana funds to generate yields via qualified custodians without direct investor involvement.
- Investor benefits include quarterly reward distribution: Brings passive income to traditional accounts, potentially adding 3-7% returns depending on the asset, enhancing ETF competitiveness.
- Nine-month implementation window: Gives asset managers time to update agreements, with full rollout expected by mid-2026, signaling stronger U.S. leadership in blockchain innovation.
Conclusion
The U.S. Treasury crypto ETF staking guidance marks a transformative step in digital asset regulation, empowering Ethereum and Solana ETFs to deliver staking rewards while upholding strict safety protocols. By integrating secondary keywords like proof-of-stake yields and regulatory safe harbors, this framework not only enhances investor returns but also positions the U.S. as a frontrunner in blockchain advancements. As the industry evolves, stakeholders should monitor upcoming amendments to capitalize on these opportunities for diversified, yield-bearing portfolios.
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.