Overview
- The Treasury-drafted proposal reached the Office of Information and Regulatory Affairs and the White House for review on Nov. 14, according to regulatory filings.
- The plan would align the U.S. with the OECD’s Crypto-Asset Reporting Framework, with global implementation scheduled to begin in 2027.
- Modeled on the FATCA approach, the rule would require foreign custodians and exchanges to report U.S. taxpayers’ wallet and transaction data to the IRS.
- Administration guidance calls for excluding decentralized finance transactions from new reporting obligations under any U.S. implementation.
- Joining CARF would curtail the use of offshore exchanges in jurisdictions such as Singapore, the UAE and the Bahamas for anonymity, with additional rulemaking and coordination still required before data sharing begins.