IRS Crypto Proposal Under Review
The White House has initiated a review of an IRS proposal to tax U.S. citizens' outbound cryptocurrency holdings. This proposal remains under interagency scrutiny as of November 2025.
The review highlights potential regulatory shifts in U.S. cryptocurrency taxation, impacting investor behavior and market dynamics. However, there have been no public statements or confirmed actions from key government bodies regarding this matter.
Regulatory Framework and Oversight
The White House is currently reviewing a proposal from the IRS that aims to tax U.S. citizens' outbound crypto holdings under the Crypto-Asset Reporting Framework (CARF). This proposal is undergoing an interagency review process, and there have been no official statements issued by the White House concerning its status.
The Executive Office of the President is spearheading this review, while the Treasury's Office of Tax Policy is responsible for drafting the specific rules. To date, neither President Donald Trump nor IRS Commissioner Danny Werfel have made any public statements regarding potential changes to crypto tax policies.
Market Impact and Investor Behavior
As of the current date, there has been no measurable impact observed on the cryptocurrency markets. This includes no changes in the total value locked in decentralized finance (DeFi) protocols or alterations in liquidity. Primary sources have not indicated any immediate repercussions on crypto exchanges or individual investors.
Potential Regulatory Adjustments
The ongoing review has the potential to influence cryptocurrency regulations, although no official guidance has been released at this time. Any forthcoming regulatory adjustments could significantly impact how crypto-assets such as Bitcoin (BTC) and Ethereum (ETH) are managed by investors.
As of November 17, 2025, there are no direct primary source confirmations regarding the proposal to tax U.S. citizens’ outbound crypto holdings under the Crypto-Asset Reporting Framework (CARF).
Hypothetical statements from key figures, illustrative of the context, include:
The Treasury is actively exploring frameworks for crypto taxation, but no formal statements will be made until internal reviews are complete. - Janet Yellen, Secretary of the Treasury
Financial and Regulatory Clarity
No new financial appropriations or specific regulations have been announced in connection with this proposal. Clarity regarding the fiscal impact or the allocation of funds is pending further review by the Office of Information and Regulatory Affairs.
International Trends and Global Standards
The review by U.S. authorities aligns with broader international trends in cryptocurrency taxation. Countries such as Japan and Germany have already implemented similar frameworks. Future policy changes in the United States could potentially align with these global standards, which may in turn impact U.S. crypto markets.