The post US Treasury Approves Staking Rewards for Regulated Crypto Funds appeared first on Coinpedia Fintech News
US Treasury Secretary Scott Bessent has announced new rules that officially allow regulated crypto investment products, such as exchange-traded products (ETPs) and trusts, to earn staking rewards.
Until now, funds that offered crypto exposure could only hold the asset itself. They couldn’t participate in staking, a process that helps secure proof-of-stake (PoS) blockchains and provides rewards in return. The new rules now give a clear, legal framework for funds to stake assets while remaining fully compliant with US financial regulations.
How the New US Treasury Staking Rules Work
Staking works much like earning interest. When investors stake a digital asset on a proof-of-stake network, they lock it up to support the network and earn rewards in return.
Previously, many financial institutions avoided staking because of unclear tax and compliance standards. Now, the Treasury has defined a safe harbor structure that outlines exactly how to stake assets within a regulated framework.
According to Bill Hughes, Senior Legal Advisor at Consensys, the safe harbor applies only to simple and transparent trust structures. The rules require that:
The fund can hold only one digital asset and cash.
Assets must be managed by a licensed custodian.
Investors must be able to withdraw funds anytime, even while assets are staked.
Funds must use independent staking providers.
Activities are limited to holding, staking, and redeeming the digital asset—no trading or high-risk operations are permitted.
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Why the Treasury’s Staking Framework Matters for Institutional Investors
This update removes one of the biggest barriers to institutional crypto adoption. Fund managers and custodians were previously hesitant to stake due to uncertain tax implications. Now, staking rewards are clearly recognized under US regulatory standards, giving institutions the confidence to participate safely.
The decision is expected to boost staking participation across major blockchains like Ethereum, Solana, and others. With regulated funds now able to stake, more investors can earn staking rewards without needing to manage the technical process themselves. This will also bring greater liquidity and decentralization to proof-of-stake networks.
A Major Step for Crypto Integration in Traditional Finance
The Treasury’s approval marks a turning point for crypto and traditional finance. Staking has evolved from a gray area into a recognized income-generating activity for regulated products.
With these clear rules in place, everyday investors can now gain exposure to staking rewards through traditional investment channels, bringing crypto one step closer to mainstream financial adoption.
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FAQs
Funds can stake one approved digital asset through licensed custodians and independent providers while allowing anytime investor withdrawals.
It removes tax and compliance uncertainty, giving institutions confidence to earn staking rewards safely.
Major proof-of-stake chains like Ethereum and Solana may see higher participation as regulated funds begin staking.
Investors can now access staking rewards through traditional, regulated products without managing technical setups themselves.