The White House is reportedly considering joining a global tax reporting framework that could grant the Internal Revenue Service (IRS) access to information on U.S. citizens’ offshore crypto accounts.
If adopted, the United States would join a group of countries committed to implementing the tax standards set out in the global Crypto-Asset Reporting Framework (CARF).
IRS Could Soon Monitor Offshore Crypto Transactions
The Trump administration may soon allow the IRS to access information about Americans’ offshore crypto accounts, enabling the agency to tax foreign holdings. The Treasury Department’s proposed “Broker Digital Transaction Reporting” rule aims to bring the U.S. into alignment with the international crypto tax reporting framework and could discourage Americans from shifting assets to offshore exchanges.
If approved, the US would formally join the international CARF and grant the IRS access to Americans’ foreign crypto account data for potential tax enforcement. According to the Office of Information and Regulatory Affairs website, the proposal made its way to the White House on Friday, and President Trump’s advisors will now review the recommendation.
The recommendation comes after the White House issued a report in July 2025, outlining recommendations for how digital assets should be regulated.
The report forms part of an executive order issued by President Trump establishing the Working Group on Digital Assets Markets. The Working Group was tasked with producing recommendations for a regulatory framework that could act as a guide for the digital asset industry.
In the report, the Working Group emphasised the potential of digital assets and blockchain technologies to transform the U.S. financial system, stating:
“The Working Group, as the author of this report, endorses the notion that digital assets and blockchain technologies can revolutionize not just America’s financial system, but systems of ownership and governance economy-wide.”
The further added:
“American entrepreneurs who pioneer new industries using these technologies deserve both clarity on the policies that affect their efforts and praise for the progress they have made.”
Despite the IRS not classifying the proposed rule as “economically significant,” it would require Americans to be far more rigorous in reporting taxable gains from offshore crypto exchanges.
United States Encouraged to Join the Crypto-Asset Reporting Framework
The president’s Working Group encouraged the Treasury Department and the IRS to introduce rules that would bring the U.S. into the CARF. Established in 2022 by the Organisation for Economic Cooperation and Development, the CARF is expected to be rolled out globally by 2027.
CARF is a global agreement under which participating countries automatically share information about their citizens’ crypto asset holdings to combat tax evasion. Members include major crypto hubs such as the United Arab Emirates and Singapore.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.