White House Weighs IRS Plan to Track and Tax Overseas Crypto Accounts
The White House is weighing an IRS plan to lean on the Crypto-Asset Reporting Framework (CARF), a global tax-reporting system that would allow foreign platforms to share data on accounts held by U.S. persons. The Trump administration previously pushed for U.S. participation in CARF, and renewed interest signals a push to tighten cross-border transparency for crypto assets.
Market sentiment is negative because expanded reporting tends to mean stricter enforcement and reduced privacy for traders and holders. If implemented, the change could increase compliance costs for exchanges and custodians, complicate life for U.S. expats, and push some users toward privacy-preserving tools; it also marks a broader trend of governments aiming to close offshore crypto reporting gaps.