The White House has unveiled a comprehensive regulatory framework requiring U.S. taxpayers to report their foreign digital asset accounts, aiming to enhance tax transparency and strengthen America’s position in cryptocurrency markets. The proposal specifically targets unreported offshore cryptocurrency holdings as part of a broader effort to combat tax evasion and modernize financial oversight.
Central to the policy shift is a mandate for taxpayers to disclose foreign-held digital asset accounts, aligning cryptocurrency reporting requirements with existing standards for traditional foreign financial assets. The report further instructed the IRS and Treasury Department to incorporate decentralized finance (DeFi) protocol characteristics when developing implementation rules for these measures.
Concurrently, the framework urges banking regulators to establish clear pathways for cryptocurrency-centric financial institutions to access banking services, prohibiting discrimination solely based on involvement with digital assets. The proposal also directs the Financial Crimes Enforcement Network (FinCEN) to reassess updates for the Bank Secrecy Act, seeking to adapt anti-money laundering protocols for cryptocurrency assets while preserving compliance standards.
Chaired by White House crypto and artificial intelligence lead David Sacks, the report signals an intentional policy evolution toward fostering U.S. leadership in digital asset innovation through balanced oversight and institutional integration.