The Trump administration is reviewing a proposal to allow the IRS to access and tax Americans’ foreign crypto account data. Indeed, the administration has advocated for joining CARF, a global tax-reporting agreement that would allow the IRS to identify Americans’ foreign crypto holdings better.
Earlier this year, the White House encouraged the Treasury Department and IRS to impose such rules, which would see the United States join the Crypto-Asset Reporting Framework, or CARF. The CARF has already been adopted by most G7 nations and major crypto hubs as an effort to defeat tax evasion and fraud. Earlier this summer, Donald Trump’s crypto advisors recommended that the United States join the agreement as well.
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“Implementing CARF would discourage U.S. taxpayers from moving their digital assets to offshore digital asset exchanges,” the White House said at the time. “Implementing CARF would promote the growth and use of digital assets in the United States and alleviate concerns that the lack of a reporting program could disadvantage the United States or U.S. digital asset exchanges.”
Global implementation of CARF is set to roll out in 2027. The cryptocurrency market is currently trading within a descending wedge pattern at press time, and could fall further should the proposal pass.