The White House is currently evaluating an IRS proposal that could significantly alter the way U.S. citizens handle cryptocurrency tax compliance. This proposed change targets offshore holdings of digital assets, seeking to expand the IRS’s oversight over international transactions involving Americans. The impact of this review could be substantial, affecting both individuals and institutions involved in cryptocurrency. While these regulations might create additional burdens on crypto investors and businesses alike, the proposal does aim for greater tax collection through expanding reporting requirements. The Treasury Department and the Internal Revenue Service (IRS) are leading this initiative, which reflects ongoing efforts to regulate digital assets held abroad by U.S. citizens.