According to the source, the Trump administration is advocating for U.S. participation in the OECD Crypto-Asset Reporting Framework (CARF) to enable the IRS to better identify Americans’ foreign crypto holdings; source: the source. CARF requires virtual asset service providers, exchanges, and custodians in participating jurisdictions to automatically report customers’ crypto account information to local tax authorities for exchange with partner countries under a common standard; source: OECD. OECD states that 48 jurisdictions have committed to implement CARF by 2027, including the EU and UK, expanding reporting coverage across major trading venues; source: OECD. For traders, U.S. alignment with CARF would raise KYC and cross-border reporting requirements for U.S. persons on offshore platforms, reduce opacity around cross-exchange flows, and narrow avenues for untaxed arbitrage, while the IRS has already finalized domestic digital asset broker reporting via Form 1099-DA beginning with 2025 transactions reported in 2026; sources: OECD and IRS.

According to the source, the Trump administration is reviewing a proposal to allow the IRS to access and tax Americans' foreign crypto account data. The source post did not provide an effective date, scope, or implementation details, indicating this is a review stage rather than a finalized rule, per the source. Under current IRS guidance, U.S. taxpayers are taxed on worldwide income, including gains from digital assets, so any expanded access to offshore account data would primarily heighten enforcement and reporting for U.S. persons, according to IRS guidance. Given the source’s report of potential enforcement expansion and the IRS’s worldwide income framework, traders should monitor U.S. exchange inflows, offshore venue liquidity, and any IRS rulemaking updates for possible shifts in market depth and spreads, per the source and IRS guidance.