We issued 56 million tax forms for 2025. Most were under $50. It’s time to fix digital asset taxes.

Kraken says it issued over 56 million Form 1099-DAs for 2025, the vast majority documenting tiny crypto transactions (53.4% were $10 or less; 74.3% under $50; 18.5 million under $1). The firm argues that current tax rules—reporting gross proceeds and taxing staking rewards on receipt—create outsized compliance costs (typical active holders spend $250–$500 annually; average filer spends ~8 hours and $128–$300) and “phantom income” for long-term holders. Kraken urges Congress to enact a meaningful de minimis exemption (covering Bitcoin and not just stablecoins) and permit taxpayers to tax staking rewards at sale rather than receipt. Policy changes would materially reduce micro‑transaction reporting, lower taxpayer costs, and remove a barrier to everyday crypto payments, which could support broader crypto use and merchant adoption.