The White House is reviewing a new Treasury Department proposal that would significantly expand the IRS’s ability to access information on U.S. taxpayers’ foreign cryptocurrency accounts, marking a major step toward aligning the country with emerging global tax standards.
The draft rule, submitted to the Office of Information and Regulatory Affairs on November 14, 2025, aims to bring the U.S. closer to adopting the Crypto-Asset Reporting Framework (CARF), a global system created by the OECD to combat offshore tax evasion. CARF implementation is expected to begin worldwide in 2027.
Key Aspects of the Proposed Rule
- Expanded IRS access
If finalized, the rule would allow the IRS to obtain transaction data from foreign exchanges, custodians, and service providers when those platforms hold digital assets on behalf of U.S. taxpayers. This mirrors existing reporting rules for offshore bank accounts. - Alignment with CARF
The proposal follows a July 2025 White House report recommending that the U.S. move toward full CARF compliance. G7 nations, along with leading crypto hubs like Singapore and the UAE, have already committed to the standard, leaving the U.S. among the last major jurisdictions still finalizing its approach.
- Targeting offshore tax evasion
CARF is specifically designed to prevent individuals from hiding wealth by transferring digital assets abroad. Under the framework, global tax authorities can automatically exchange information on cross-border crypto holdings.
- No new DeFi reporting obligations
The White House clarified that, even under the updated rules, decentralized finance (DeFi) transactions will not face additional reporting requirements, addressing industry concerns about excessive surveillance on non-custodial systems.
- Regulatory review underway
The rule must undergo a formal OIRA review before it can be published for public comment. If adopted, it would mark one of the most expansive updates to U.S. crypto tax reporting standards and signal a firm commitment to global regulatory coordination.
