I thought how it worked is that the...tax service...doesn't care as long as it's all in crypto. They just hit you with capital gains tax when you convert crypto back into fiat, whether or not your gains are through staking. Maybe it's more complicated than that though.Is Gemini required to report Capital Gains to the (eye - are - es)?
If so, they will most likely report the interest gained on any currency.
In return, you will have to pay taxes.