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Oct 6, 2026

IRS expands safe harbor allowing crypto trusts to stake digital assets without tax penalties

The Internal Revenue Service has updated its safe harbor guidance through Revenue Procedure 2026-20, allowing qualifying investment and grantor trusts to stake proof-of-stake digital assets without jeopardizing their federal income tax status. The guidance builds on previous Revenue Procedure 2025-31.

Oct 6, 2026·2 sources
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Top claims

  • ▪Staking rewards must consist of additional units of the same digital asset held by the trust and must be distributed proportionally to holders based on their interests.
  • ▪The safe harbor guidance is limited to trust classification and does not provide a general tax exemption for staking income or address the tax treatment of forks and airdrops.
  • ▪Compliant staking is treated as a property-conservation activity, which prevents it from being classified as active management and preserves the trust's tax status under IRC §§ 671–677.

Subtopics

Crypto regulation1Crypto taxation1Ethereum staking & validators1

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