Analysts predict that this move will accelerate institutional adoption of proof-of-stake assets and increase demand for staking-based ETPs in the U.S. market.
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have released new regulatory guidance that explicitly permits cryptocurrency exchange-traded products (ETPs) to stake underlying digital assets and distribute the resulting staking rewards directly to retail investors.
The move has generated a lot of buzz within the crypto community as it finally addresses long-standing restrictions that had limited ETPs’ ability to generate and on-chain yields to potential customers.
Treasury Secretary makes the announcement
The guidance was announced by Treasury Secretary Scott Bessent via a post on X, and it laid emphasis on how the move gives ETP issuers a “clear path” to stake digital assets on behalf of their holders. In the past, the U.S. limited how ETPs could generate on-chain yield, restricting them primarily to holding spot assets such as Bitcoin or Ethereum.
However, the new guidance changes that as it effectively allows issuers to provide staking-based returns — similar to how traditional funds offer dividends — while ensuring transparency and accountability.
Industry analysts expect the move to accelerate institutional adoption of proof-of-stake assets and stimulate demand for staking-based ETPs. It also places the United States ahead of other major financial jurisdictions in formalizing staking within its regulatory perimeter.
According to Bessent, the policy is a significant step toward expanding investor participation in digital assets without compromising on oversight. “This move increases investor benefits, boosts innovation, and keeps America the global leader in digital asset and blockchain technology,” he wrote.
The announcement comes as the U.S. inches towards ending the ongoing U.S. government shutdown.
Record-breaking U.S. government shutdown nears end
As of the time of this writing, the government shutdown in the U.S. has lasted 41 days, beating the previous record of 35 days, which was set over five years ago, but there is now an end in sight.
Late on Sunday, November 9, the Senate advanced a bipartisan compromise bill in a key procedural vote, the first major breakthrough after 14 failed attempts, which paves the way for the government to reopen as soon as later this week.
“After 40 long days, I’m hopeful we can bring this shutdown to an end,” Senate Majority Leader John Thune said shortly before the vote.
The 60-40 vote to take the first step toward ending the shutdown came hours after a considerable number of Democrats agreed to support a package that would fund multiple agencies and programs for the full fiscal year, and all others until January 30, 2026.
In exchange, the Trump administration promised to rehire government workers fired at the start of the funding lapse, and the promise of a Senate floor vote in December on legislation to extend expiring Obamacare tax credits.
As uncertainty thaws in response to the bill advancing, confidence can be expected to slowly return. Already, cryptocurrencies have been showing signs of a rebound, with Bitcoin showing strength and altcoins like Ethereum, Solana, and Avalanche showing signs of recovery from earlier declines.
The treasury’s move could further strengthen the recovery, as market observers have suggested the new announcement could drive significant inflows into upcoming Ethereum, Solana, and Cardano-based funds, potentially reshaping how crypto investment products operate in the U.S.
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