Kraken Urges De Minimis Crypto Tax Exemption After 56M IRS Filings

Kraken called for a de minimis tax exemption on small crypto transactions and reforms to staking taxes after submitting over 56 million 1099-DA forms to the IRS for 2025. The filings showed ~18.5 million transactions under $1, ~28 million at $10 or less, and 75% below $50, with only 8.5% exceeding the $600 reporting threshold. Kraken warned of $250–$500 annual extra compliance costs per user and criticized 'phantom gains' from staking, amid a congressional draft exempting only sub-$200 stablecoin trades. This push highlights retail burdens that could curb on-chain activity and influence BTC flows.