IRS Safe Harbor Lets Qualifying Trusts Stake Digital Assets

The Internal Revenue Service issued updated guidance allowing qualifying investment trusts and grantor trusts to stake digital assets on proof-of-stake networks without jeopardizing their federal tax status.

Revenue Procedure 2026-20, issued Oct. 6, establishes a 14-part safe harbor and replaces Revenue Procedure 2025-31. The rules cover trusts whose interests trade on a national securities exchange.

Eligible trusts may hold cash and units of only one type of digital asset. The assets must remain under the control of one or more qualified custodians. The trust also must maintain a liquidity policy approved by the Securities and Exchange Commission.

The guidance treats compliant staking as an activity that protects and conserves trust property.

The guidance applies to tax years ending on or after Nov. 10, 2025.