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White House Considers Dialing Up Offshore IRS Crypto Surveillance Capabilities
The proposed rule would expand IRS visibility into Americans’ foreign digital asset transactions.
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The White House is now reviewing a proposed rule that could give the IRS access to U.S. taxpayers’ crypto transaction data from foreign jurisdictions — a major step toward adopting a global reporting standard.
What’s the Scoop?
- CARF Push: The proposal follows a July White House report recommending that Treasury and the IRS move toward implementing the international Crypto-Asset Reporting Framework (CARF), which aims to tighten global tax compliance for digital assets.
- Foreign Exchange Oversight: If approved, the IRS would gain access to information on U.S. taxpayers’ digital asset activity conducted abroad — a move framed as discouraging offshore asset migration.
- Regulatory Alignment: The Office of Information and Regulatory Affairs received the rule on Friday for review, part of its role in ensuring new regulations match the administration’s policy priorities.
- DeFi Exemption (for now): The earlier White House report stressed that any CARF-aligned rules should avoid introducing new reporting requirements for DeFi transactions.