Overview
- Kraken, which disclosed the figures Wednesday, said it generated 56 million Form 1099-DA statements for 2025, with about one‑third under $1.
- Form 1099-DA is a new broker report for digital assets that lists only gross proceeds and not purchase cost, forcing customers to rebuild gains and driving thousands of support questions.
- More than half of Kraken’s entries covered $10 or less, 74% were under $50, and only 8.5% exceeded $600, according to the company’s data.
- Kraken said many sub‑dollar forms came from staking rewards that are taxed when credited, which can leave users owing tax on tokens they did not sell if prices later fall.
- Lawmakers are debating a de minimis break limited to stablecoins as Kraken urges a broader, inflation‑indexed exemption and an option to tax staking at sale, with the exchange estimating active users need $250 to $500 a year for crypto tax software.