tl;dr
The White House proposed legislation requiring U.S. taxpayers to report foreign digital asset accounts to discourage offshore cryptocurrency holdings and support domestic growth. A 168-page report by the President’s Working Group on Digital Asset Markets, chaired by David Sacks, outlines policy prop...
The White House proposed legislation requiring U.S. taxpayers to report “foreign digital asset accounts” to discourage Americans from moving their cryptocurrency holdings offshore. This policy shift aims to promote the growth and use of digital assets within the United States while addressing concerns that the lack of reporting could place U.S. digital asset exchanges at a disadvantage.
The recommendation appeared in a comprehensive 168-page report released by the President’s Working Group on Digital Asset Markets, chaired by White House crypto and AI czar David Sacks. The report offers policy proposals covering market structure, stablecoins, banking, illicit finance, and taxation related to cryptocurrencies.
A key taxation proposal is the implementation of a Crypto-Asset Reporting Framework (CARF) intended to retain crypto activity domestically. The report highlighted the issue of cross-border transfers and offshore exchanges providing U.S. taxpayers with tax evasion opportunities, which would create structural disadvantages for U.S.-based brokers and exchanges if left unaddressed.
The White House defined foreign digital asset accounts as those maintained by foreign exchanges or service providers but emphasized that the IRS and Treasury should avoid imposing new reporting requirements on DeFi (decentralized finance) transactions. DeFi facilitates financial activities on blockchain networks without intermediaries or personal identification disclosure.
Other recommendations call for banking regulators to clarify paths for crypto banks to participate in traditional banking. The Federal Reserve has long hesitated to grant master accounts to crypto-focused banks, but the report urges banking agencies not to deny master accounts or bank charters solely based on crypto involvement and suggests automatic approval if application deadlines are unmet.
On illicit finance, the report requests that FinCEN assess whether the Bank Secrecy Act should be amended with crypto-specific language. Some crypto advocates oppose applying the act due to the pseudonymous nature of crypto transactions, which complicates compliance.
During a White House ceremony, senior officials including David Sacks, Treasury Secretary Scott Bessent, and SEC Chair Paul Atkins endorsed the report, praising it as a major advancement in U.S. crypto policy. Atkins highlighted the importance of providing clear regulatory guidelines to foster a secure and innovative crypto marketplace in America.
The report notably termed President Trump’s November re-election as “America’s hard fork,” framing it as a positive reset for U.S. crypto policy. It concluded that implementing the core recommendations would position cryptocurrency as a central feature of a new American Golden Age.