On October 6, 2026, the IRS released Rev. Proc. 2026-20, which provides an updated safe harbor for state law trusts that otherwise qualify as investment trusts under Treas. Reg. § 301.7701-4(c) and as grantor trusts to participate in staking transactions while preserving their intended tax classification, provided that such trusts satisfy the prescribed operational, governance, custody, staking provider, liquidity and distribution requirements.
For more: https://www.wbny.com/irs-clarifies-staking-safe-harbor-for-digital-assets-trusts