U.S.-based cryptocurrency exchange Kraken has filed approximately 56 million forms with the Internal Revenue Service (IRS) for the 2025 tax year, with roughly one-third of these transactions valued below $1. Over half of the forms reported transactions worth $10 or less. The data reveals that only 8.5% of the newly introduced Form 1099-DAs exceeded the $600 threshold, while 74% were for less than $50.
Each form is also sent to the customer, resulting in a reconciliation task for the taxpayer and additional costs. Kraken estimates that the extra burden on active cryptocurrency holders could range from $250 to $500 per year, excluding standard filing costs. The exchange attributes the issue to two main problems: the lack of a de minimis exemption for cryptocurrency payments and the taxation of staking rewards as ordinary income upon receipt.
Kraken is advocating for legislative changes, including a broader inflation-indexed exemption and the option for taxpayers to choose when staking rewards are taxed.