Chiara Bianchi
The White House has begun evaluating a proposed regulation that would give the Internal Revenue Service (IRS) access to information on digital asset transactions conducted by U.S. taxpayers in foreign jurisdictions.
The proposal was submitted to the Office of Information and Regulatory Affairs (OIRA) on Friday. OIRA, operating under the Office of Management and Budget, is responsible for assessing federal rules to ensure they support the administrationโs broader policy objectives.
This development follows a comprehensive White House digital asset policy report released during the summer. That report offered recommendations on improving crypto oversight, including a call for the IRS and Treasury to explore rules implementing the Crypto-Asset Reporting Framework (CARF).
CARF, an emerging international standard, aims to boost tax compliance by requiring digital asset service providers to report specific types of transactions to regulators worldwide.
According to the report:
โU.S. regulations implementing CARF would discourage U.S. taxpayers from moving their digital assets to offshore exchanges.โ
The document also emphasized that adopting CARF could strengthen the U.S. digital asset ecosystem, ensuring domestic exchanges remain competitive and preventing regulatory disadvantages from inconsistent reporting standards.
DeFi Transactions Expected to Remain Unaffected
While advocating for stronger reporting mechanisms, the White House also stressed that CARF-aligned rules should not introduce new reporting requirements for DeFi activity.
This distinction suggests the administration is aiming for a targeted approachโenhancing transparency in cross-border transactions while avoiding unnecessary burdens on decentralized finance users within the U.S.
The proposed ruleโs review marks another step toward the global standardization of crypto tax reporting, signaling that digital asset compliance remains a priority at the federal level.
