Trump Considers Game-Changing IRS Power Grab: Foreign Crypto Holdings Now in Tax Crosshairs
The US Treasury just leveled up its surveillance game—and crypto traders might not like the loot drop.
Crypto's Tax-Free Paradise Crumbles
The Trump administration is reviewing a proposal that would let the IRS track—and tax—foreign-held cryptocurrency assets. No more hiding behind decentralized ledgers or offshore exchanges. If passed, this could force crypto whales to cough up capital gains on every satoshi stashed beyond US borders.
How They’ll Track Your Bag
While details remain scarce, insiders suggest the plan leverages existing anti-money laundering frameworks. Think FATCA on blockchain steroids—foreign exchanges may soon auto-report US user balances. Self-custody wallets? Those might get a stay-out-of-jail-free card… for now.
The Compliance Industrial Complex Wins Again
Wall Street’s KYC hawks are already salivating. Meanwhile, Bitcoin maximalists are dusting off their ‘Not Your Keys, Not Your Coins’ memes—with extra emphasis on ‘not your tax liability.’
One thing’s certain: the government always gets its cut. Even in pretend internet money.
Trump administration reviewing proposal to allow the IRS to access and tax Americans' foreign crypto account data.
— Watcher.Guru (@WatcherGuru) November 17, 2025
Earlier this year, the WHITE House encouraged the Treasury Department and IRS to impose such rules, which would see the United States join the Crypto-Asset Reporting Framework, or CARF. The CARF has already been adopted by most G7 nations and major crypto hubs as an effort to defeat tax evasion and fraud. Earlier this summer, Donald Trump’s crypto advisors recommended that the United States join the agreement as well.
“Implementing CARF WOULD discourage U.S. taxpayers from moving their digital assets to offshore digital asset exchanges,” the White House said at the time. “Implementing CARF would promote the growth and use of digital assets in the United States and alleviate concerns that the lack of a reporting program could disadvantage the United States or U.S. digital asset exchanges.”
Global implementation of CARF is set to roll out in 2027. The cryptocurrency market is currently trading within a descending wedge pattern at press time, and could fall further should the proposal pass.
