White House Reviews IRS Plan to Track Offshore Crypto Holdings

The White House has begun evaluating a new Treasury Department proposal that would give the Internal Revenue Service (IRS) expanded authority to track and tax U.S. citizens’ offshore cryptocurrency accounts. This review signals a stronger federal push—under the Donald Trump administration—to prevent Americans from using overseas digital asset platforms to avoid tax obligations.

According to a Bloomberg report, the proposal would bring the United States closer to adopting the global Crypto-Asset Reporting Framework (CARF), an international tax transparency standard created in 2022 by the Organization for Economic Cooperation and Development (OECD). CARF enables automatic cross-border sharing of crypto account information, helping governments identify potential tax evasion. Countries such as the United Kingdom, France, Japan, Singapore, and the United Arab Emirates have already committed to the framework, and global rollout is expected as early as 2027.

If approved, the U.S. would implement a system similar to FATCA, requiring foreign custodians to report digital asset holdings owned by U.S. citizens directly to the IRS. This move is part of a broader regulatory shift aimed at tightening oversight of digital assets while providing clearer rules for the growing crypto industry.

Recent developments highlight this shift. Two U.S. senators recently introduced a bipartisan bill that would expand the Commodity Futures Trading Commission’s (CFTC) role in overseeing cryptocurrencies, placing it on equal footing with the Securities and Exchange Commission. Meanwhile, the government is progressing on the Crypto Clarity Bill, a legislative effort designed to establish a unified regulatory framework for digital assets and reduce uncertainty for both companies and investors.

Additional guidance from the Treasury and IRS has clarified tax rules for staking-based Exchange Traded Products (ETPs), improving transparency for crypto investors. The Trump administration has also signaled a more supportive stance toward digital assets by replacing the former SEC chair with a regulator known for taking a pro-crypto approach.

This growing alignment between tax authorities, legislators, and federal agencies suggests that the U.S. is preparing for a more structured and globally integrated approach to crypto regulation in the years ahead.