- Kraken issued over 56 million tax forms to the IRS in 2025, with 18.5 million for transactions under $1.
- The exchange advocates for a de minimis tax exemption to eliminate forms for small transactions and an end to taxing “phantom” staking income.
- Reporting requirements continue to evolve, with a recent Fortune report finding US tax compliance costs taxpayers $146 billion.
- Kraken’s co-CEO confirmed that the company is still considering a public listing after filing for a confidential IPO in late 2025.
Cryptocurrency exchange Kraken called for urgent changes to US tax policy on Wednesday after reporting it issued millions of forms for trivial transactions last year. The company argued the current system creates unnecessary complexity for everyday crypto users.
Consequently, Kraken stated it issued more than 56 million 1099-DA tax forms to the IRS in 2025, as now mandated. However, approximately 28 million of those forms were for transaction values of $10 or less.
The exchange specifically advocated for two key reforms to modernize the tax code. It seeks a de minimis exemption to exclude small, routine digital asset payments from capital gains reporting.
Kraken similarly wants to end taxes on “phantom” income from cryptocurrency staking rewards. This currently requires holders to pay taxes on value they have not yet realized by selling those rewards.
“This is not about helping crypto companies,” said Kraken about its recommendations. “It is about 55 million Americans… who are navigating a tax system designed before digital assets existed.”
Meanwhile, US tax reporting rules for digital assets continue to shift and spark debate. A recent Fortune report cited data showing US tax compliance cost individuals $146 billion in 2026.
In other company news, Kraken co-CEO Arjun Sethi confirmed at an April event that the firm still plans to go public. This follows its confidential IPO filing with the SEC in November 2025.
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