Kraken Says Tax System Is Overwhelming Users and Government

[cryptoenthusiast]

According to Kraken, the current reporting framework forces both exchanges and users to handle an overwhelming volume of filings, much of it tied to low-value transactions. The firm argues that eliminating reporting on small payments would significantly reduce complexity without meaningfully impacting tax revenue.

The exchange also pointed to broader inefficiencies in the US tax system, citing estimates that individual tax compliance costs Americans over $100 billion annually in time and expenses. Kraken says crypto users are disproportionately affected because every transaction, no matter how small, may trigger reporting obligations.

While Congress has considered limited exemptions — such as reporting thresholds for stablecoin transfers — no broad crypto tax relief framework has yet been passed.

[nihalsari]

tax system really said yes we need a form for this 12 cent transfer