According to CoinMeta, the United States Internal Revenue Service (IRS) has updated its Safe Harbor policy to allow eligible investment trusts and grantor trusts to pledge digital assets represented by Security Tokens (STOs) without affecting their federal income tax classification. Under Revenue Procedure 2026-20, this Safe Harbor applies to eligible trusts that hold digital assets on unlicensed networks. It is stated that trusts that meet all the requirements of the new procedure can authorize the pledging of their digital assets while continuing to qualify as investment trusts and grantor trusts. This guidance is limited to the classification of eligible trusts and does not provide a general tax exemption for pledge income. Trusts must trade on national securities exchanges, and pledge disclosures must be submitted to the Securities and Exchange Commission (SEC). The assets of the trusts are limited to cash and a single type of digital assets that operate on unlicensed STO networks. Pledging must be conducted through a custodian that collaborates with one or more pledge providers. Trusts and their sponsors must remain unrelated to the pledge providers. Trusts must implement the new requirements by October 6, 2026.