Kraken will submit 56 million encrypted tax returns to the IRS in 2025, more than 70% of which cost less than $50.

Cryptocurrency exchange Kraken reported that it filed approximately 56 million 1099-DA forms for crypto transactions with the IRS for its 2025 tax year. Of these, about 18.5 million involved transactions under $1, with 74% below $50 and only 8.5% above $600. Kraken pointed out that the lack of a "minimum amount tax exemption" clause for crypto payments and the fact that staking rewards are taxed at market value on the day they are received result in a large number of small transactions and staking rewards needing to be reported, leading to significant time and software costs for investors. Furthermore, current brokerage reports only disclose the total sales amount, excluding cost price. Kraken stated that it has received numerous inquiries from users regarding this and is urging Congress to pass a de minimis tax exemption rule covering a wider range of crypto assets and linked to inflation, allowing taxpayers to choose to tax staking rewards upon sale.