IRS Updates Guidance, Qualified Trusts Can Participate in PoS Staking While Retaining Tax Benefits

On October 6, the U.S. IRS released Revenue Procedure 2026-20, updating and replacing Revenue Procedure 2025-31 published in November 2025. The new guidance clarifies that eligible investment trusts and grantor trusts can participate in PoS staking while retaining tax benefits. The IRS classifies compliant staking as a "property preservation activity," allowing trusts to remain on the passive side and maintain their status as investment trusts and grantor trusts (IRC Sections 671 to 677). This safe harbor includes 14 requirements, such as shares being listed on a national exchange, holding only a single digital asset, assets being held by a qualified custodian, liquidity policies approved by the SEC, and not hoarding staking rewards. This guidance applies to tax years ending on or after November 10, 2025.

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