IRS outlines safe harbor for digital asset trusts that stake proof-of-stake tokens
Revenue Procedure 2025-31: Safe Harbor for Investment Trusts and Grantor Trusts Engaging in Digital Asset Staking
The IRS creates a safe harbor that allows qualifying digital asset investment trusts to engage in proof-of-stake staking. If the trust meets strict limits on assets, custody, liquidity, and provider relationships, staking will not change its status as an investment trust or grantor trust. Existing trusts get a nine-month window to amend their agreements to comply.
Scope of the Guidance
The revenue procedure provides a safe harbor under which a trust that otherwise qualifies as an investment trust under §301.7701-4(c) and as a grantor trust under §§671 and 677 may authorize and conduct staking of its digital assets without being treated as a business entity, as long as it satisfies specific conditions on assets, activities, custody, liquidity, and relationships with staking providers.
Existing qualifying trusts may amend their trust agreements within nine months beginning November 10, 2025, to adopt these terms without losing their investment trust or grantor trust status.
Why It Matters
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