The U.S. government is considering introducing a new legislative proposal aimed at requiring American citizens to declare their digital money accounts held overseas. The purpose of this initiative is to prevent U.S. residents from transferring encryption assets such as Bitcoin and Ethereum abroad to evade regulation.

The policy recommendation suggests that this practice can not only enhance people's confidence in participating in digital money activities within the United States but also protect the U.S. and its exchanges from potential tax losses. In short, the government hopes to ensure that citizens pay their taxes honestly through this policy and to prevent the concealment of funds overseas.

This proposal comes from a government working group specifically responsible for Digital Money and artificial intelligence affairs. The working group, led by David Sacks, recently published a 168-page report that includes multiple recommendations regarding Digital Money regulation, with overseas account declaration being just one of them.

If this policy is ultimately passed, it will have a significant impact on cryptocurrency investors. U.S. citizens will be required to report any accounts opened at overseas exchanges and digital assets purchased to the U.S. government. Failure to comply with this regulation may face the risk of a tax audit. This is undoubtedly an important attempt by the government to control individual digital assets.

However, this proposal has also sparked controversy. Supporters believe that it will help regulate the digital money market, combat tax evasion and money laundering, making the entire industry more transparent. Critics, however, worry that this may affect the anonymity features of encryption, which is precisely the reason many people choose to use digital money.

In any case, the introduction of this policy proposal marks a shift in the government's attitude towards the regulation of digital assets. It reflects the authorities' efforts to seek a balance between innovation and regulation, as well as privacy and transparency. With the continuous development of the digital economy, similar policy discussions may become increasingly common, which will profoundly affect the future development direction of cryptocurrencies.