U.S. crypto funds granted the right to stake digital assets
The document introduces the concept of a “safe harbor” and a special status for grantor trusts — investment funds that attract investors’ capital for allocation into digital assets.
A grantor trust is a special type of trust fund in which taxes on income from asset allocation are paid not by the company but by the fund’s investors, the IRS explained. Under certain restrictions, such structures are allowed to stake assets in Proof-of-Stake networks — for example, within the Ethereum ecosystem — without violating tax law requirements.
The “safe harbor” conditions stipulate that grantor trusts may hold only one type of digital asset plus cash on their balance sheet and must use the services of a qualified custodian to store confidential data and staking-related income.
Grantor trusts are proposed to be prohibited from any speculative trading, while their permitted operational activities are limited to holding, staking, and converting crypto assets. Rewards from staking digital currencies must be distributed among fund investors quarterly, either in-kind or in cash.
Earlier, the IRS announced that the tax agency is abandoning the requirement for legal entities and individuals to report crypto transactions exceeding $10,000.
See also: "Chinese authorities accuse the United States of stealing 127,000 bitcoins"
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