White House Reviews New Regulations: Plans to Tax Overseas Crypto Assets Owned by U.S. Citizens
The Trump administration is advancing a critical regulatory agenda aimed at bringing U.S. citizens’ overseas crypto assets into the tax management system.
According to the latest report from Decrypt, information on government websites shows that the Treasury Department’s proposed rules for adopting an international crypto asset reporting framework were delivered to the White House last Friday. Currently, the President’s advisory team is reviewing the proposal, marking another key step for the U.S. towards approving these rules.
If this move is ultimately implemented, it means the United States will formally join the Crypto-Asset Reporting Framework (CARF). The framework is designed to combat international tax evasion through automatic information exchange between member countries. For investors, this means their holdings on overseas cryptocurrency exchanges may be automatically shared with U.S. tax authorities.
The White House has previously expressed support for this direction. Earlier this year, the Trump administration encouraged the Treasury Department and IRS to push forward the drafting of such rules. A crypto policy report published this summer explicitly recommended the U.S. join the agreement, arguing it would create a fair competitive environment for U.S. digital asset exchanges and promote healthy development of the domestic industry.
Global Tax Transparency Framework — CARF
The Crypto-Asset Reporting Framework (CARF) is a global agreement established by the Organization for Economic Cooperation and Development (OECD) in 2022. Its core mechanism requires member countries to automatically share information about their citizens’ crypto asset holdings to effectively curb cross-border tax evasion.
The framework has already received signatures and support from dozens of countries, forming a powerful lineup. Members include all G7 countries such as Japan, Germany, France, Canada, Italy, and the UK, as well as important crypto asset hubs like the UAE, Singapore, and the Bahamas. U.S. participation will further expand the coverage and influence of this global tax oversight network.
White House Policy Considerations
The Trump administration’s support for joining CARF is rooted in multiple policy considerations. According to a comprehensive policy report released this summer by the President’s crypto advisors, implementing CARF will bring multiple strategic advantages.
The White House stated in the report: “Implementing CARF will prevent U.S. taxpayers from transferring their digital assets to offshore digital asset exchanges.”
The report also believes this move “will promote the growth and use of digital assets in the United States, and relieve concerns that the lack of reporting procedures could put the U.S. or U.S. digital asset exchanges at a disadvantage.”
Notably for the market, the regulatory framework appears to leave room for the rapidly developing decentralized finance (DeFi) sector. It is reported that the White House specifically stated in its summer policy report that such regulations “should not impose any new reporting requirements on DeFi transactions.” This exemption detail is crucial for DeFi protocol developers and users, as it may affect future innovation and capital flows in the sector.
According to the plan, the CARF framework will be promoted and implemented globally starting in 2027.
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