The White House proposed that Congress consider legislation requiring U.S. taxpayers to report foreign crypto accounts, aiming to deter American investors from moving assets offshore. This proposal was highlighted in a recent 168-page report from the Trump administration, suggesting that without a proper reporting mechanism, U.S. crypto companies could face competitive disadvantages. The report articulated that the facilitation of cross-border transfers enables tax evasion, which necessitates a formal Crypto-Asset Reporting Framework (CARF). Additionally, it recommended clarifying pathways for crypto banks in engaging with traditional banking, emphasizing that regulations should not hinder such institutions from obtaining master accounts with the Federal Reserve. Furthermore, the report pressed for an evaluation of whether existing anti-money laundering laws require updates for the crypto sector, thereby underscoring the need for regulatory adaptation as the digital asset market evolves.

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