U.S. Moves Toward Joining Global Crypto Reporting Network as CARF Review Reaches White House

The U.S. is intensifying efforts to regulate offshore digital assets, with a proposed rule now under White House review that would grant the IRS access to data on Americans' foreign cryptocurrency accounts. This move aligns U.S. tax policy with global standards, specifically the Crypto-Asset Reporting Framework (CARF), developed by the OECD in 2022 to combat cross-border tax evasion.

CARF mandates automatic sharing of foreign crypto account details among member countries, aiming to curb tax avoidance. The Treasury Department's proposal excludes decentralized finance (DeFi) from reporting requirements, focusing instead on centralized platforms. The White House argues that joining CARF could diminish the appeal of offshore crypto exchanges, potentially strengthening domestic platforms.

The framework is slated for implementation by 2027, marking a significant shift in crypto tax oversight. This development reflects broader regulatory trends as governments worldwide seek to integrate digital assets into traditional financial systems.