US Moves to Plug Crypto Tax Gap with Global Reporting Standard

The United States is moving to align its tax enforcement with a new global standard for digital assets.

The White House has begun reviewing a proposed rule to implement the Crypto-Asset Reporting Framework (CARF), which would grant the IRS unprecedented visibility into Americans’ cryptocurrency transactions with foreign platforms.

This initiative is framed by the administration as a necessary step to modernize tax compliance for the digital age and prevent the offshore “leakage” of taxable assets. By adopting CARF, the US aims to integrate cryptocurrency into the same kind of international financial reporting system that governs traditional bank accounts.

The administration’s approach appears calibrated, however, as its guiding policy document explicitly cautions against extending these new requirements to the complex world of DeFi.