Crypto exchange Kraken advocates for tax reform following issuance of 56 million IRS forms
The digital asset platform pushed for two major modifications to United States tax regulations impacting cryptocurrency holders in order to "eliminate millions of unnecessary forms."
Digital asset trading platform Kraken has advocated for modifications to United States tax regulations following the submission of millions of transaction reports "worth less than $1" in compliance with its 2025 reporting obligations.
According to a blog post published on Wednesday, Kraken submitted over 56 million tax documents — known as 1099-DAs — to the United States Internal Revenue Service (IRS) in 2025 in accordance with current legal mandates. The exchange revealed, however, that approximately 18.5 million of these forms documented transactions valued at under $1, while roughly 28 million covered transactions of $10 or less, and three-quarters of all forms represented transactions below $50.
With the goal of "eliminate millions of unnecessary forms," the platform urged lawmakers to implement a de minimis exemption for taxation purposes that would exclude "small, routine digital asset payments from capital gains reporting." The exchange also pushed for the elimination of "phantom" income associated with cryptocurrency staking, which currently forces holders to "owe taxes on value they have not realized" when they choose not to liquidate their staking rewards.
"This is not about helping crypto companies. 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."
Kraken
The reporting obligations for both cryptocurrency holders and trading platforms have undergone substantial changes since digital assets emerged. While various proposals have been introduced for implementing a de minimis tax exemption for digital currencies such as Bitcoin (BTC), the latest draft legislation in the United States Congress proposed that only transactions involving stablecoins under $200 would trigger IRS reporting requirements.
Based on a Fortune article referencing information from the nonprofit Tax Foundation, filing individual tax returns costs United States taxpayers $146 billion in both time commitment and direct financial expenses. In November 2025, the Trump administration terminated the IRS's free Direct File tax filing program. This program had previously enabled qualified taxpayers to submit their tax returns electronically without any charges.
Kraken still reportedly considering IPO
Following the digital asset exchange's submission of a confidential initial public offering (IPO) application with the United States Securities and Exchange Commission in November 2025, various reports indicated that Kraken might have paused its plans due to unstable market conditions. Nevertheless, Kraken co-CEO Arjun Sethi validated these reports during a Semafor event held in April, stating that the organization would probably proceed with going public in the near future.