$XRP

#WhiteHouseDigitalAssetReport A New Crypto-Asset Reporting Framework

In the report, the Crypto-Asset Reporting Framework (CARF) is a new system that is suggested to ensure that the activity remains in the country. This framework is designed to increase oversight of crypto transactions and discourage U.S. citizens from using overseas platforms to avoid taxes. The report explains that the ease of transferring assets across borders has made it easy for people to avoid paying taxes.

However, according to the Trump White House digital asset policy no new reporting rules should apply to DeFi (decentralised finance). Since DeFi operates without intermediaries or identity checks, the set of rules recommends that the IRS and Treasury Department avoid imposing reporting requirements that would be difficult or impossible to enforce.

Let’s discuss some core aspects of the Trump Digital Asset Policy 2025:

Foreign Crypto Accounts Must Be Reported

One of the most discussed proposals is a law that will compel U.S. taxpayers to inform about their foreign digital asset accounts to the IRS. This regulation can be compared to the law that already exists regarding foreign bank accounts (FBAR). The idea is to stop shifting users' crypto holdings offshore to avoid U.S. taxes. The goal is to protect U.S.-based exchanges from losing business to foreign platforms. This makes the holdings of international crypto more transparent.