TLDR
- U.S. may require taxpayers to report offshore digital asset accounts.
Crypto tax rules would not apply to DeFi under current proposals.
Crypto banks could get automatic approval if deadlines are missed.
Strategic U.S. crypto reserve to hold BTC, ETH, XRP, SOL, and ADA.
The White House has called on Congress to draft legislation requiring U.S. taxpayers to report foreign crypto accounts. The recommendation comes as part of a sweeping 168-page crypto policy report released Wednesday by the Trump administration.
White House Pushes for Foreign Crypto Account Reporting
The report proposes that Congress enact laws mandating U.S. individuals and entities to disclose foreign digital asset holdings. According to the document, this step would ensure that U.S. crypto users and exchanges are not at a disadvantage compared to offshore platforms.
The recommendation forms part of the administration’s broader strategy to keep crypto activity within U.S. borders. The proposed policy aims to stop tax avoidance by limiting access to offshore crypto havens. The administration stated that maintaining the current gaps could place U.S.-based digital asset firms in an unfavorable position.
Today the White House is releasing its comprehensive report on digital assets, providing long-awaited regulatory clarity for innovators in a cutting-edge industry. President Trump is delivering on his promise to make the U.S. the crypto capital of the planet. pic.twitter.com/hrp8uQwf76
— David Sacks (@davidsacks47) July 30, 2025
The report defined foreign digital asset accounts as those managed by offshore exchanges or foreign crypto service providers. However, it clarified that the IRS and Treasury should not expand these reporting obligations to decentralized finance (DeFi) protocols.
Tax and Regulatory Proposals for Crypto Ecosystem
The President’s Working Group on Digital Asset Markets suggested creating a Crypto-Asset Reporting Framework (CARF). The goal is to track crypto transactions more effectively and prevent misuse of cross-border transfers for tax evasion.
The report said, “Leaving these pathways untouched would create a structural disadvantage for brokers and exchanges domiciled in the United States.” Officials said the IRS should issue guidance on tax rules for activities such as wrapping and unwrapping tokens, unrealized gains, and small crypto receipts.
The group also supported legislation confirming that individuals can hold crypto assets without a third party and asked Congress to grant the Commodity Futures Trading Commission (CFTC) the authority to regulate non-security spot crypto markets.
Crypto Banking and Strategic Bitcoin Reserve
Banking regulators were urged to offer clear guidelines for crypto banks to access services like Fed master accounts. The report said applications for banking approvals should not face delays simply because of a firm’s crypto involvement.
It added that if deadlines for applications are missed, approval should be granted unless there are “extraordinary circumstances.” The Trump administration also revisited the idea of a strategic crypto stockpile, with assets such as BTC, ETH, XRP, SOL, and ADA.
The working group stated that the U.S. crypto reserve and stockpile, overseen by the Treasury Department, would be funded with forfeited digital assets. Officials said the bitcoin portion of the reserve would generally not be sold.
Broader Crypto Strategy and Legislative Backing
Senior officials, including David Sacks, Treasury Secretary Scott Bessent, and SEC Chair Paul Atkins, supported the recommendations. During a press event, Atkins stated, “Today marks yet another important milestone in unlocking American innovation.”
The report follows the enactment of the GENIUS stablecoin law and aligns with the House’s bipartisan “Clarity” bill. Officials said they would monitor how the legislative process evolves in both chambers.
The report also urged the SEC to explore safe-harbor frameworks and simplified registration paths for token distributions. FinCEN was asked to examine whether existing anti-money laundering laws, like the Bank Secrecy Act, should be updated to reflect crypto-specific challenges.
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