Hoskinson Celebrates Cardano Compliance with New IRS Liquidity Rules for Staking in ETPs

Charles Hoskinson expressed excitement over Cardano compliance with the new IRS and Treasury staking rules for crypto ETPs

For context, the U.S. Treasury and the IRS jointly released updated guidance on November 10. The move outlined the requirements for staking and sharing of staking rewards in crypto ETPs.

The guidance, which details liquidity and custody rules for trusts listed on national exchanges, has been hailed as a potential game-changer for proof-of-stake (PoS) blockchains, particularly Cardano.

In the summary, the commentator noted that the new IRS guidance places a strong focus on liquidity requirements for crypto-based ETPs. According to the rule, an asset fails to meet redemption standards if it is restricted from being transferred within one business day.

This condition is particularly favorable for Cardano given its liquid staking model, which enables users to delegate their ADA without locking tokens or limiting transfers.

As a result, Cardano stands out as one of the few networks that naturally meet the liquidity and accessibility standards outlined by the IRS and Treasury, giving it a clear advantage in meeting staking eligibility for regulated ETPs.

Cardano Founder Reacts

Cardano founder Charles Hoskinson responded positively to the new liquidity requirements. In a post on X, he shared a GIF of a man smiling excitedly, signaling his delight at how well Cardano aligns with the updated rules.

No Cardano Spot ETF in the US

Cardano does not yet have a regulated spot ETP in the United States, nor does it have one that supports staking. Grayscale Investments remains the only issuer currently seeking to launch a spot Cardano ETF, though the SEC has delayed its decision multiple times.

The recent U.S. government shutdown further disrupted the review process. Now that the shutdown has ended, optimism is high that the SEC will approve the product for launch in the coming weeks.