On November 17, 2025, the White House began reviewing a Treasury Department proposal to empower the Internal Revenue Service (IRS) to access and tax Americans’ offshore cryptocurrency holdings, aligning the U.S. with the OECD’s Crypto-Asset Reporting Framework (CARF), per , . Established in 2022, CARF mandates automatic cross-border sharing of crypto account data to combat tax evasion, with over 53 jurisdictions—including G7 members, Singapore, and the UAE—already committed to implementation by 2027, per , . The proposal, submitted on November 14, 2025, would require foreign exchanges and custodians to report U.S. citizens’ holdings to the IRS, similar to FATCA for traditional accounts.
The administration, including advisors like Scott Bessent, views CARF as essential to prevent capital flight to offshore platforms, ensuring U.S. exchanges aren’t disadvantaged, per . Earlier in 2025, the White House endorsed CARF to close tax loopholes, per . If approved, enforcement begins in 2026 via 1099-DA forms from U.S. crypto exchanges, targeting foreign custodial wallets and exchanges, per . DeFi transactions remain exempt, minimizing immediate disruptions, per. X posts from @Kylechasse warn of a “global crypto tax net,” highlighting IRS blockchain oversight.
Bitcoin (BTC) dipped to $92,900 on November 17, down 35% from its peak, amid 4,668 BTC moved from dormant wallets ($500M), per . Ethereum (ETH) followed, falling below $3,000, per . The proposal revives 2019 IRS rules on crypto reporting, which caused short-term dips but no sustained collapse, per. Clinton Donnelly called it “the beginning of the end of crypto anonymity,” per. With 72 countries in CARF by 2028, this could shift trading dynamics, boosting DeFi popularity.
Track IRS updates on irs.gov and OECD CARF progress at oecd.org. BTC support at $90,000 and ETH at $2,970 are critical; set stop-losses accordingly, or diversify into USDC, per TradingView. Dollar-cost average during dips, per. Follow @TheBlock__ on X for developments. CARF could unlock $1T in compliant institutional flows by 2027, but offshore evasion tactics may evolve.
