Is the IRS Finally Cooling Off on Crypto Staking? 🧊🥩
Big moves are happening in the world of crypto taxation! If you’ve been following the "staking tax" saga, December 2025 is bringing some long-awaited clarity (and some new homework).
Here’s the breakdown of what’s changing:
✅ The Good News for Institutions: The IRS recently established a "Safe Harbor" (Rev. Proc. 2025-31). This allows big investment trusts and ETFs to stake their assets without blowing up their tax status. Translation: Expect more "staking-enabled" crypto funds in 2026.
⚖️ The Legislative Fight: A new bipartisan bill is hitting the House floor that aims to fix the "instant taxation" problem. Currently, the IRS wants a cut the second you earn a reward. This bill wants to wait until you actually sell those rewards.
📂 The "Headache" News: Form 1099-DA is officially here for 2025. Your exchange is now talking to the IRS more than ever. If you're staking, "wallet-by-wallet" record-keeping is no longer optional it's a necessity.
The Bottom Line: The U.S. is trying to balance being the "Crypto Capital" with strict reporting. While the tech is getting faster, the tax code is still playing catch-up.