Rev. Proc. 2026-20: Safe harbor for investment and grantor trusts staking digital assets
Guidance clarifies, modifies, and supersedes Rev. Proc. 2025-31
The IRS today released Rev. Proc. 2026-20 that describes a safe harbor for trusts that otherwise qualify as investment trusts under Treas. Reg. § 301.7701-4(c) and as grantor trusts to stake their digital assets without jeopardizing their tax status as investment trusts and grantor trusts for federal income tax purposes.
Rev. Proc. 2026-20 also provides a six-month period after October 6, 2026, for an existing qualifying trust to implement the requirements of the safe harbor, including by amending its governing instrument to authorize staking, revising its processes and procedures, or a combination of both.
The revenue procedure clarifies, modifies, and supersedes Rev. Proc. 2025-31 and is effective for tax years ending on or after October 6, 2026.