Kraken has urged regulators to introduce a 'de minimis' rule, which would exempt small cryptocurrency transfers from tax reporting requirements. The firm's report highlights the significant number of small transactions included in its 56 million crypto tax forms submitted to the IRS.
According to Kraken, three-quarters of these forms are below $50, with half being less than $10. This has led the firm to argue that the current tax reporting regime is too complex and expensive for both users and brokers.
The proposed 'de minimis' rule would introduce a threshold for small transactions, indexed to inflation and paired with anti-abuse guardrails. However, the current scope of proposals limits this exemption to payment stablecoins, not other cryptocurrencies such as Bitcoin.