Why are tiny crypto trades, even $1, subject to taxes?

Kraken reported filing over 56 million Form 1099-DAs for the 2025 tax year, highlighting that 18.5 million were for transactions under $1 and more than half were under $10, with roughly 75% under $50. Under current US guidance treating crypto as property, these micro-transactions trigger taxable events, creating a large compliance burden for users and pushing demand for paid crypto tax tools. Kraken is urging a “de minimis” exemption (often proposed between $200–$600) to reduce filings. The report notes Kraken’s parent filed an S‑1 in Nov 2025 (valuation ~ $13.3bn in Apr 2026). Market context: Bitcoin is up over 4% in the past week, trading around $78,250. The tax-reporting regime could weigh on retail activity and increase costs for crypto users unless policymakers adopt relief, while short-term price momentum for BTC remains positive.