U.S. Reviews Global Crypto Reporting Standards
The White House is reviewing a Treasury Department and IRS proposal that could give federal tax authorities new access to Americans’ cryptocurrency accounts held overseas. This effort follows a broader push to close offshore tax gaps and bring the United States closer to global crypto-asset reporting standards.
Officials are considering whether the country should adopt the Crypto-Asset Reporting Framework, or CARF, which the OECD designed to help governments exchange crypto-asset data across borders. Many major economies have already committed to CARF, yet the U.S. has remained on the sidelines until now.
What CARF Could Mean for American Crypto Holders
CARF would require foreign and domestic crypto service providers to share specific customer transaction information with tax authorities. Its structure resembles FATCA, but it focuses on digital assets instead of bank accounts.
Under a recent White House–commissioned report tied to Executive Order 14178, CARF adoption could mean new disclosure rules for Americans who store digital assets on non-U.S. exchanges or wallet services. The IRS could then match self-reported holdings with data from foreign custodians, making undisclosed assets harder to conceal.
Supporters say this framework could discourage individuals from shifting crypto offshore only to gain tax advantages. However, industry participants worry that expanded reporting could create new compliance challenges and raise privacy concerns if regulators do not implement the rules carefully.
Potential Impact on the Crypto Industry
The proposal could reshape crypto taxation and transparency in several ways:
- It may strengthen IRS enforcement by improving access to cross-border account data.
- It could reduce competitive gaps between domestic and foreign exchanges.
- It would likely increase reporting duties for traders who hold assets outside the United States.
As the White House continues its review, companies, advisors, and investors are watching closely. A decision to adopt CARF would signal a major shift in how American regulators handle offshore digital-asset activity, and it may influence how people choose to store their crypto going forward.
