Kraken Seeks Relief from Overwhelming Crypto Tax Reporting Requirements

Kraken, a leading cryptocurrency exchange, has published a report highlighting the burden of crypto tax reporting in the United States. According to the report, 75% of the 56 million crypto tax forms submitted to the IRS were less than $50.

The exchange notes that this is an overwhelming number of small transactions that are reported to the regulator. While the IRS requires brokers to submit every single transaction for the entire year, other payment apps like Venmo only trigger reporting if the transfers are above $600.

Kraken is calling for a 'de minimis' tax exemption, which would eliminate millions of unnecessary forms while protecting revenue integrity. The exchange proposes that a meaningful de minimis threshold, indexed to inflation and paired with anti-abuse guardrails, would be an effective solution.