The IRS has issued new guidance allowing certain trusts to stake digital assets without losing their status as investment or grantor trusts for federal income tax purposes, according to Bloomberg Tax.

The safe harbor, outlined in Revenue Procedure 2025-31, provides a framework for how trusts can participate in staking while remaining compliant, but it also gives existing trusts a limited window to amend their governing instruments to meet the new standards.  

Staking allows digital asset holders to lock their tokens to a blockchain network to earn rewards. Accounting Today reports that the IRS had received multiple requests for clarification on whether this activity could jeopardize a trust’s tax classification. Under the new procedure, an investment trust that is a grantor trust can now stake assets and still retain its tax status.  

“Previously, earning staking income inside of a grantor trust would have caused it to lose its tax status as a grantor trust,” wrote Jessalyn Dean, senior policy advisor for US tax reporting at Ledgible.  

Dean noted that the ruling requires staking to be managed through a custodian, with rewards distributed quarterly either in-kind or as cash. Existing trusts have nine months from Nov. 10, 2025, to amend their agreements and remain eligible under the new rules.