Global Crypto Tax Framework: U.S. Moves Closer to OECD Reporting Standard

The Trump administration is taking concrete steps to bring the United States into an international crypto tax reporting system, with the Treasury Department officially submitting a comprehensive framework to the White House last week for presidential review. This development signals a significant shift in how the U.S. approaches taxation of digital assets held abroad.

What Is CARF and Why Does It Matter?

The Crypto-Asset Reporting Framework (CARF), established by the Organization for Economic Cooperation and Development (OECD) in 2022, represents a coordinated global effort to address cross-border tax evasion involving cryptocurrency holdings. Under this multilateral accord, participating nations commit to automatically exchanging information regarding their citizens’ crypto asset positions.

The framework already commands substantial international support. Signatories include major economies like Japan, Germany, France, Canada, Italy, and the United Kingdom, alongside key crypto hubs including Singapore, the United Arab Emirates, and the Bahamas. This growing coalition underscores the momentum behind standardized crypto tax reporting worldwide.

U.S. Strategic Considerations

President Trump’s crypto policy advisory team endorsed CARF participation in a recent policy report, framing it as essential for maintaining U.S. competitiveness. Officials outlined the rationale: participation would prevent citizens from using overseas platforms to circumvent taxation, while simultaneously strengthening the position of American digital asset enterprises in global markets.

However, the administration has indicated caution regarding the scope of implementation. The policy guidance specifically noted that “new reporting requirements should not be set for DeFi transactions,” suggesting a measured approach that balances enforcement with industry growth.

The IRS would gain authority to request crucial data about American citizens’ foreign crypto holdings, establishing a mechanism for comprehensive taxation oversight across international borders.

Timeline and Market Implications

The official deployment of CARF across participating jurisdictions is scheduled to commence in 2027, providing member states approximately two years for technical and administrative preparation. This timeline allows the U.S. government sufficient opportunity to develop specific operational procedures for implementation.

The framework’s rollout is poised to reshape how crypto investors approach cross-border asset management and tax planning strategies globally.