What is Kraken asking for in US crypto tax rules?

Kraken is calling for a “de minimis” tax exemption to exclude small crypto transactions from capital gains reporting. The exchange also wants changes to how staking rewards are taxed. The goal is to reduce reporting burdens for everyday crypto users.

Why did Kraken push for a de minimis crypto tax exemption?

Kraken reported issuing over 56 million tax forms (1099-DAs) to the Internal Revenue Service in 2025, many for very small transactions. About 18.5 million were under $1, and most were under $50. The company argues these small transactions create unnecessary complexity for taxpayers.

What is a de minimis exemption in crypto taxes?

A de minimis exemption would mean small crypto transactions (like minor payments or transfers) would not trigger capital gains tax reporting. This is similar to how small foreign currency transactions are sometimes treated. It would simplify tax compliance for frequent, low-value crypto usage.

What is Kraken’s issue with staking taxes?

Kraken is also challenging how staking rewards are taxed, calling it “phantom income.” Currently, users may owe taxes on staking rewards even if they have not sold them. Kraken argues taxes should only apply when the value is realised through a sale.

How big is the crypto tax reporting burden in the US?

The scale is significant, with Kraken alone issuing tens of millions of tax forms in one year. According to data cited from the Tax Foundation, US taxpayers already spend $146 billion annually on tax compliance. Crypto reporting adds another layer of complexity.

Does US law already include a crypto tax exemption for small transactions?

Not broadly, but there have been proposals in Congress. One recent draft suggested that only stablecoin transactions under $200 might be exempt from reporting. However, this is limited and does not yet apply to all crypto transactions.

How does this impact everyday crypto users in the US?

Without a de minimis exemption, even tiny transactions can trigger tax reporting requirements. This creates administrative overhead for retail users making frequent trades or payments. Kraken argues reform would make crypto more practical for everyday use.

Is this good or bad for crypto investors?

It is generally positive if implemented, as it would reduce friction and compliance costs. However, it could also lead to more regulatory scrutiny as lawmakers refine the rules. This is a policy proposal, so outcomes are still uncertain.

Kraken flags $1 trades in US tax push

Written by BloombergPublished Apr. 23 2026Last Updated Apr. 23 2026

Cryptocurrency exchange Kraken has urged US lawmakers to reform crypto tax rules after reporting tens of millions of low-value transactions to the Internal Revenue Service for 2025.

The company said it issued more than 56 million Form 1099-DAs, including 18.5 million transactions worth under $1 and roughly 75% valued below $50.

“This is not about helping crypto companies,”

Said Kraken.

“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 called for a de minimis exemption to exclude small digital asset payments from capital gains reporting, arguing the current system creates unnecessary administrative burdens.

The exchange also criticised rules taxing staking rewards as income before they are sold, describing the approach as forcing users to pay taxes on unrealised gains.

US crypto tax reporting requirements have tightened in recent years, though proposals in Congress have suggested limited exemptions, such as excluding stablecoin transactions under $200 from reporting obligations.

Separately, Kraken is still considering a public listing after filing confidentially with the US Securities and Exchange Commission in 2025, with co-CEO Arjun Sethi indicating the company may proceed once market conditions stabilise.