Discussion

• @secscottbessent Treasury Secretary Scott Bessent on x

  Today @USTreasury and the @IRSnews issued new guidance giving crypto exchange-traded products (ETPs) a clear path to stake digital assets and share staking rewards with their retail investors. This move increases investor benefits, boosts innovation, and keeps America the

• @billhughesdc Bill Hughes on x

  Under the safe harbor that @SecScottBessent announces below, trusts may stake digital assets (on permissionless proof-of-stake networks) if they: 1) Hold only one digital asset type and cash; 2) Use a qualified custodian to manage keys and execute staking; 3) Maintain

• @0xbonzo @0xbonzo on x

  Huge win for #Ethereum 🙌🏼 New IRS/Treasury guidance could drive massive retail adoption, increase liquidity, & locking up more ETH supply. Bullish af for $ETH long-term! 🚀 🦇🔊

• @thomasuhm Thomas Uhm on x

  Many thanks to @USTreasury and @IRSnews for providing this critical clarity into the ability of ETFs to stake within a Grantor Trust. This removes the final major hurdle for staking within ETFs from a regulatory perspective. @jito_sol ETF staking szn fully on!

• @kmsmithdc Kristin Smith on x

  Thank you @SecScottBessent. This is a critical and important development for issuers and investors of crypto ETPs. Next up: We need staking rewards for all taxpayers to be taxed fairly by removing harmful Biden-era policies that lock up innovation.

• @jseyff James Seyffart on x

  Honestly did not think this would settled via a tweet from the treasury secretary lol

• @xethalis Greg Xethalis on x

  On the last point, this is interesting. You can have “mixed digital asset” grantor trusts where a trust starts out with 1:0.1:0.01 SOL:ETH:BTC and this appears to not allow such a grantor trust to stake as the ratio of the mixed digital asset basket would fluctuate.

• @thinkingcrypto1 Tony Edward on x

  BULLISH! US Treasury and IRS give clarity for staking in ETFs!

• @xethalis Greg Xethalis on x

  They are allowing both liquidity reserves that can be altered AND liquidity management arrangements (e.g., financing to facilitate redemptions) [image]

• @xethalis Greg Xethalis on x

  A couple of areas with less flexibility: - Staking providers must be independent of the Trust and its Sponsor (but not its Custodian) (i.e., no affiliated staking providers) - Staking providers *must* indemnify against slashing - Must receive staking rewards in the same form of […

• @solanainstitute @solanainstitute on x

  Thank you @USTreasury and the @IRSnews for this critical step towards clear crypto tax treatment.

• @sjdedic Simon Dedic on x

  A few years ago, I wouldn't even have dared to dream about news like this. Nowadays, it's just another announcement the market barely reacts to. The fundamentals are getting stronger by the day, slowly but surely opening the doors for the flood of institutional capital that'll

• @dzambhalahodl Steven Lubka on x

  It's interesting Bessent personally tweeted this, speaks to relative priorities

• @chadsteingraber Chad Steingraber on x

  New US Treasury guidance allows crypto ETF's to participate in staking (would be similar as if they were Dividends). Past actions and statements⬇️ November 2022: Treasury Secretary Janet L. Yellen identified key risks in crypto markets, including comingling of customer assets, [i…

• @xethalis Greg Xethalis on x

  This is a lot of flexibility. The IRS has followed the GLS and staking guidance frameworks to afford reasonable flexibility within a mostly inflexible grantor trust requirement, because this is in the best interest of the trust beneficiaries. [image]

• @ericbalchunas Eric Balchunas on x

  Safe to say this is the first time Treasury secretary has tweeted about ETFs 🔥