Kraken files 56M crypto tax forms, urges tax reform

Kraken filed 56M crypto tax forms for 2025, mostly for small transactions. Only 8.5% exceeded $600. Kraken urges tax code reforms to ease compliance burdens.

Kraken reported filing 56 million crypto tax forms with the IRS for the 2025 tax year. Of these, about 18.5 million covered transactions under $1, and more than half were for $10 or less. Only 8.5% of the forms exceeded the $600 reporting threshold, while 74% were for transactions below $50. Each form is also sent to customers, creating a significant reconciliation burden, especially since standard tax software does not support crypto transactions. Kraken estimates that active crypto holders may spend an additional $250–$500 annually on specialized tax tools. The company highlighted that the current tax code, lacking a de minimis exemption and requiring staking rewards to be taxed at receipt, imposes a disproportionate compliance burden on individuals. Kraken is advocating for legislative changes, including an inflation-indexed de minimis exemption and more flexibility in taxing staking rewards. Data from the Tax Foundation shows Americans already spend $146 billion annually on tax compliance, with crypto adding further complexity and cost.