The United States has recently provided guidance that could pave the way for cryptocurrency exchange-traded products (ETPs) and trusts to earn staking rewards without triggering tax issues. The Internal Revenue Service (IRS) has issued new guidance that appears to offer additional regulatory clarity for crypto staking through these financial instruments.
This development comes as a significant step forward for the cryptocurrency industry, as staking rewards have become an increasingly popular way for investors to earn passive income in the digital asset space. Staking involves holding funds in a cryptocurrency wallet to support the operations of a blockchain network and, in return, receiving rewards in the form of additional coins.
The guidance from the IRS is expected to provide more certainty for investors and financial institutions looking to participate in staking activities through ETPs and trusts. By clarifying the tax treatment of staking rewards, the U.S. government is creating a more favorable environment for the growth and adoption of cryptocurrencies.
In a related development, Propanc Biopharma, a biopharmaceutical company, has announced plans to establish a crypto treasury after securing up to $100 million from Hexstone Capital. The funds will be used to further the company’s potential cancer treatment research and reignite investor interest.
The move by Propanc Biopharma underscores the increasing intersection between traditional finance and the cryptocurrency sector. By leveraging crypto treasuries, companies like Propanc are exploring innovative ways to fund their operations and attract investment capital.
Experts believe that the integration of cryptocurrencies into traditional financial systems, such as ETPs and treasuries, could open up new avenues for capital formation and investment. As more companies and financial institutions embrace digital assets, the landscape of finance is likely to undergo significant transformation.
The recent developments in the cryptocurrency space highlight the growing importance of regulatory clarity and institutional adoption in shaping the future of digital finance. By providing clear guidelines for staking activities and encouraging the use of crypto treasuries, the U.S. is taking steps to foster innovation and growth in the emerging blockchain industry.
Overall, the guidance from the IRS and the establishment of a crypto treasury by Propanc Biopharma signal a new era of opportunity and collaboration between traditional finance and the cryptocurrency ecosystem.
#NexSouk #AIForGood #EthicalAI #CryptoFinance #DigitalTransformation
References:
1. “US opens door for crypto ETFs, trusts to earn staking rewards” – CoinTelegraph [https://cointelegraph.com/news/us-irs-treasury-guidance-crypto-etp?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound]
2. “U.S. Clears Way for Crypto ETPs to Get Into Yield Without Triggering Tax Problems” – CoinDesk [https://www.coindesk.com/policy/2025/11/10/u-s-clears-way-for-crypto-etps-to-get-into-yield-without-triggering-tax-problems]
3. “Biopharma raises $100M for crypto treasury to back cancer treatment” – CoinTelegraph [https://cointelegraph.com/news/propanc-secures-100-million-launch-crypto-treasury?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound]
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