The U.S. Treasury Department and IRS have introduced new regulations providing a clear regulatory framework for crypto exchange-traded products (ETPs). These rules allow ETPs to stake digital assets and distribute staking rewards to retail investors, provided certain conditions are met. According to Bill Hughes, a senior legal advisor at Consensys, the safe harbor mechanism applies to specific trust structures. These trusts must hold only a single type of digital asset and cash, with qualified custodians managing keys and staking. They must also implement SEC-approved liquidity policies to ensure redemption arrangements, maintain transaction isolation with independent staking service providers, and limit activities to asset holding, staking, and redemption, prohibiting proprietary trading.