Launchy Regulatory Roundup #63 - White House Moves to Let IRS Track Offshore Crypto

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Welcome to our 63rd edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

• Headline: White House Moves to Let IRS Track Offshore Crypto 👀 

• Global Legal Roundup

• Case Study: SEC Enforcement Drops Sharply Under Paul Atkins 🔎 

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HEADLINE

White House Moves to Let IRS Track Offshore Crypto

State of play: The White House is reviewing a new rule that would let the IRS access information on digital asset transactions made by US taxpayers on foreign platforms.

• The proposal aligns with a broader push to implement the Crypto Asset Reporting Framework, an international standard aimed at improving tax compliance by requiring digital asset providers to share transaction data.

• The move follows a summer report recommending that the IRS and Treasury create rules to curb offshore tax evasion and strengthen US oversight of crypto activity.

• The report also stressed that any new rules should avoid imposing fresh reporting requirements on DeFi transactions.

What’s Next: The rule will go through review at the Office of Information and Regulatory Affairs, then move toward public release and comment.

Why it Matters: This would tighten tax enforcement on US crypto holders using foreign exchanges and reduce incentives to move assets offshore.

Our Take: This is the clearest sign yet that the US is preparing for a more coordinated, international approach to crypto oversight.

GLOBAL LEGAL ROUNDUP

America:

• 🇺🇲 Lawmakers clear Michael Selig to lead the CFTC.

• 🇺🇲 US probes Chinese bitcoin-mining machine giant Bitmain.

• 🇺🇲 Rep. Davidson introduces bill to allow taxes to be paid in BTC.

• 🇺🇲 Senate banking panel advances Trump's FDIC pick Travis Hill.

• 🇺🇲  Ex-Coinbase lawyer announces run for NYAG, citing crypto policy.

• 🇺🇲 Samourai Wallet’s William Lonergan Hill sentenced to four years.

• 🇺🇲 Crypto groups urge Trump to fast track tax and regulatory guidance.

• 🇺🇲 US Senate banking chair eyes vote on crypto market bill next month.

• 🇺🇲 OCC says banks can hold certain cryptos to pay gas fees in latest guidance.

• 🇦🇷 Milei provided 'essential collaboration' for Libra project, report finds.

Europe:

• 🇬🇧 British fraud office arrests 2 men accused of $28M Basis Markets rug pull.

APAC:

• 🇯🇵 Japan moves to reclassify crypto and adopt major tax relief.

• 🇮🇳 India may consider stablecoin framework, diverging from RBI.

CASE STUDY

SEC Enforcement Drops Sharply Under Paul Atkins

State of play: A new report from Cornerstone Research shows SEC enforcement actions fell about 30% in fiscal year 2025 after Paul Atkins replaced Gary Gensler as chair.

• The decline aligns with historical patterns during leadership transitions and includes fewer actions involving crypto firms.

• The report noted the SEC’s dismissal of its case against Coinbase earlier this year but said the broader slowdown reflects Atkins’ push for a more measured, principle-based approach to digital asset regulation.

• The agency also released its 2026 examination priorities without mentioning crypto, signaling a shift in focus.

• The SEC’s reduced activity was also influenced by a 43-day government shutdown that limited staff and enforcement capacity.

• Meanwhile, Congress continues to work on a digital asset market structure bill that could reshape oversight by 2026, potentially expanding CFTC authority.

Our Take: The drop in enforcement doesn’t mean crypto gets a free pass, but it does show a shift toward predictable, principle based oversight. The real turning point will come when Congress finalizes the market structure bill and defines who oversees what.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

• Salah Ghazzal’s & Jake Chervinsky’s read on Policy-driven M&A.

• Nic Carter’s read on How Crypto Could Trigger the Next Financial Crisis.

• Marisa Coppel’s read on Phantom’s comments on GENIUS implementation.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.