The White House Took a Step for Crypto Regulations

The White House has taken a look at the Crypto Asset Reporting Framework (CARF) regulation, which could increase access to global crypto transactions under US tax rules. The draft text clarifies that there will be no additional obligations in the decentralized finance (DeFi) space, while new regulations are being worked on that would enable US crypto investors to access digital asset transactions abroad.

This draft, submitted to the Office of Information and Regulatory Affairs (OIRA) by the White House on Friday, allows for access to transactions made on international exchanges through the Internal Revenue Service (IRS), enabling US to take a significant step in international crypto data sharing. OIRA is a critical unit that examines whether the regulations align with the president's priorities, and this draft is part of global data sharing standards developed by the OECD in 2022.

In the digital asset report released by the White House during the summer, a strong recommendation was made for the implementation of CARF. This report emphasized that adopting this standard would reduce the motivation for investors to move their assets to offshore exchanges. The announcement clearly states that new reporting obligations should not be imposed on DeFi transactions. This situation is an important invitation for decentralized finance projects and will allow these investments to be sustained without additional obligations.

The implementation of CARF internationally is set to take place in 2027, according to the timeline set by the OECD. This recent development in US indicates an important step for the country to participate in the international data sharing regime. If the new regulation is enacted, it is expected that the Washington administration will have the most extensive oversight authority for international crypto taxation to date. This could reignite regulatory discussions in the digital asset market and signal a critical period for investors.