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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.

Автор Jesse Hamilton
Обновлено 31 июл. 2023 г., 10:03 p.m. Опубликовано 31 июл. 2023 г., 9:53 p.m. Переведено ИИ
The IRS has issued guidance on how it intends to tax crypto staking rewards. (Jesse Hamilton/CoinDesk)
The IRS has issued guidance on how it intends to tax crypto staking rewards. (Jesse Hamilton/CoinDesk)

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.

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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.

Read More: IRS Expands Key US Tax Language to Include NFTs

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Protocol Research: GoPlus Security

GP Basic Image

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  • 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.

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Citadel Securities and DeFi Waging War of Words Through SEC Correspondence

Securities and Exchange Commission logo (CoinDesk)

The investing giant had asked the U.S. Securities and Exchange Commission to treat DeFi players like regulated entities, and the DeFi crowd pushed back.

Что нужно знать:

  • A feud conducted over U.S. Securities and Exchange Commission (SEC) correspondence has developed between Citadel Securities and the DeFi sector, arguing over whether DeFi protocols should be more regulated.
  • The DeFi space is calling out the investment firm for its approach to the securities regulator.