U.S. Proposes IRS Offshore Crypto Reporting Under CARF
The White House is reviewing a Treasury rule—called the “Broker Digital Transaction Reporting” proposal—that would grant the IRS access to U.S. taxpayers’ offshore crypto accounts and transactions. Submitted to the Office of Information and Regulatory Affairs in November 2025, the plan aligns U.S. regulations with the OECD’s Crypto-Asset Reporting Framework (CARF) and awaits final approval by presidential advisors. Once adopted, the U.S. would join CARF members such as the U.A.E. and Singapore in exchanging Americans’ foreign crypto transaction data by 2027. Although deemed not economically significant, the rule aims to curb offshore crypto trading, boost tax compliance, level the playing field for domestic digital asset services, and foster market growth. The proposal explicitly exempts DeFi activities from additional reporting burdens.
Neutral
This proposal focuses on regulatory reporting rather than altering crypto supply or demand. In the short term, the rule may deter offshore trading and increase compliance costs, potentially prompting minor shifts in trading patterns. Over the long term, aligning with CARF could foster trust in domestic exchanges and level the playing field for U.S. digital asset services. Overall, the direct price impact is limited, as the rule primarily targets tax transparency rather than market fundamentals.