White House Moves to Level Playing Field for US Crypto Exchanges with New IRS Rule
In a move touted to benefit domestic digital asset businesses, the White House is reviewing a rule that would require foreign crypto platforms to report US customer transactions to the IRS.
The proposed regulation, implementing the global Crypto-Asset Reporting Framework (CARF), is designed to eliminate a key advantage for offshore exchanges.
The administration argues that the current system “could disadvantage the United States or US digital asset exchanges” by incentivizing taxpayers to move assets to unreporting foreign jurisdictions. By bringing these transactions into view, the rule aims to encourage growth and use of digital assets within the regulated US market.
The proposal, however, draws a line at decentralized finance. The White House’s foundational report explicitly recommended that the new rules should not create reporting requirements for DeFi transactions.
