On Kraken, can you start staking ETH and not incur a cap gain?
Staking on Kraken may be effectively a token swap from ETH to Kraken's ETH2.S. That'd be a cap gain.
, can you stake ETH with a simple deposit, no token swap?
, and on Coinbase?
Conversation
Hi Ryan,
All ETH will be converted to ETH after the ETH2 roll out. You may wish to consult a tax professional to better answer your question.
Best,
Kraken
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Kindly, a tax professional can't tell me if I'm able to start staking on Kraken without a like-kind exchange between my ETH and your tokenized representation of staked ETH. This is a Kraken product question.
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We haven’t tokenized staked ETH. There is no blockchain equivalent. It’s not something you can withdraw. If you’re in the US, ETH2.S is just a receipt for your ETH burn, and IOU for the ETH2 later, when it exists. Advice received is that conversion doesn’t create a tax event.