Share this article
IRS: Crypto Staking Rewards Taxable Once Investor Gets Hands on Tokens
The latest tax guidance from the Internal Revenue Service outlines how and when staking rewards are taxed.
Updated Jul 31, 2023, 10:03 p.m. Published Jul 31, 2023, 9:53 p.m.
A cryptocurrency investor given rewards for validation activity on a proof-of-stake network should count the rewards as income in the year the investor gets control of those tokens, according to a ruling issued Monday by the Internal Revenue Service (IRS).
“The fair market value of the validation rewards received is included in the taxpayer's gross income in the taxable year in which the taxpayer gains dominion and control over the validation rewards,” according to the legal analysis, which says that value should be figured as of the moment the U.S. taxpayer gains control of the tokens.
STORY CONTINUES BELOW
The rule also holds true for investors staking tokens through a crypto exchange, according to the agency, if “the taxpayer receives additional units of cryptocurrency as rewards as a result of the validation.”
The IRS legal guidance comes as other federal and state regulators – especially the U.S. Securities and Exchange Commission (SEC) – have gone after staking services from crypto exchanges as illegally offered securities. Kraken, for instance, settled accusations from the SEC by shutting down its staking platform in February. More recently, the agency said Binance’s staking service violates securities law.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
CFTC's acting chief Pham poised to go to crypto firm MoonPay once Mike Selig lands
The leader of the derivatives regulator is planning to join the crypto industry as the CFTC and other federal regulators work on policies to benefit the sector.
What to know:
- Commodity Futures Trading Commission Acting Chairman Caroline Pham confirmed again that she's heading to crypto firm MoonPay when the Senate confirms her replacement and he's sworn in.
- President Donald Trump's CFTC chair nominee Mike Selig was set for a Senate vote Wednesday evening, according to that chamber's schedule.
- Selig, currently an SEC official, would arrive at the CFTC just as several of Pham's crypto initiatives have gone live.
Top Stories
