White House Begins Detailed Review of IRS Proposal to Access Foreign Crypto Transaction Data

The White House review moves IRS plans forward to monitor foreign digital asset activity by US taxpayers.

The proposal supports global tax coordination under CARF and aims to limit offshore crypto reporting gaps.

The plan avoids new DeFi reporting rules while expanding oversight of cross-border digital asset transactions.

The White House has begun evaluating an IRS plan that would monitor and tax the offshore crypto assets held by U.S. citizens. The proposal was submitted to the Office of Information and Regulatory Affairs on Friday. The office reports to the Office of Management and Budget and vets out regulations in order to make the regulations remain within federal priorities

The submission marks another step in the administration’s ongoing evaluation of digital asset oversight. The review follows recent federal efforts to address gaps in cross-border tax reporting involving crypto transactions. The UK tax authority currently accesses exchange data and plans to gain global reporting under the OECD framework by 2026.

Background From Recent Federal Reports

Earlier this year, the administration released a broad digital asset report that covered regulatory concerns and tax compliance issues. The report recommended that the Treasury Department and the IRS consider rules that support the Crypto-Asset Reporting Framework

The framework is an international standard created to enhance tax transparency and improve information sharing between national authorities. It aims to reduce the movement of digital assets to offshore platforms by increasing oversight across jurisdictions. Several governments have already agreed to take part in the framework, including G7 members and regional financial centers such as the UAE, Singapore, and the Bahamas.

The federal report stated that participation in the framework could strengthen the domestic digital asset environment. It noted that a consistent reporting system could address concerns about unequal regulatory pressures on U.S. exchanges

It also emphasized that new rules should avoid creating reporting obligations for decentralized finance transactions. That point reflected ongoing debates over how decentralized protocols fit into existing regulatory structures.

Movement Toward Global Coordination

The Treasury Department advanced its suggested rules after the administration encouraged closer coordination with the international reporting framework. The proposed rules reached the White House on Friday for further examination

The review allows federal advisors to assess the potential impact on taxpayers, regulators, and digital asset service providers. Supporters of the framework argue that global coordination can help limit tax evasion involving foreign crypto accounts. They also say the framework offers a unified approach as more governments adopt rules for cross-border digital asset reporting.

The Organization for Economic Cooperation and Development designed the international framework in 2022. Its worldwide launch will be in 2027. Moreover, South Korea also officially signed a deal with the OECD to adopt a worldwide crypto reporting system

Many participating nations intend to exchange information automatically once the system is active. The current U.S. review will determine how the country might integrate the proposed reporting measures and how those measures align with domestic policy goals.

Next Steps for Policymakers

Regulatory advisors will continue reviewing the Treasury proposal in the coming weeks. Their assessment will shape decisions on how the United States may participate in the international framework and how the IRS might apply the information to foreign digital asset accounts.