Kraken calls for de minimus exemption on crypto taxes after 2025 reports

Cryptocurrency exchange Kraken called for a change in US tax policy after reporting millions of cases of transactions “worth less than $1” as part of its reporting requirements for 2025.

In a Wednesday blog post, Kraken said it issued more than 56 million tax forms — 1099-DAs — to the US Internal Revenue Service (IRS) in 2025 as now required by law. However, the exchange said that about 18.5 million of those forms were for transactions under $1, with about 28 million for $10 or less and 75% under $50.

Source: Kraken

In an effort to “eliminate millions of unnecessary forms,” the exchange called for a de minimis exemption for taxes to exclude “small, routine digital asset payments from capital gains reporting.” It similarly advocated for an end to “phantom” income derived from staking cryptocurrencies, requiring holders to “owe taxes on value they have not realized” by not selling their staking rewards.

“This is not about helping crypto companies,” said Kraken about its recommendations. “It is about 55 million Americans, spanning every state, age bracket and industry, who are navigating a tax system designed before digital assets existed. Congress should act to make taxpayers’ lives easier.”

Reporting requirements for both holders and exchanges have changed significantly since the advent of cryptocurrencies. Although there have been proposals for a de minimis tax exemption for cryptocurrencies like Bitcoin (BTC), the most recent draft bill in the US Congress suggested that only stablecoin transactions under $200 trigger reporting to the IRS.

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