Kraken pushes IRS de minimis crypto tax waivers; CLARITY stalled

Kraken says the IRS crypto tax reporting regime is too burdensome, because brokers must submit tens of millions of tax forms for routine small transfers. In its April 22 report, the exchange said 75% of the 56 million IRS crypto tax forms relate to transfers under $50, and 28 million are under $10. Kraken argues this differs from payment apps like Venmo, which typically only trigger reporting above $600. To cut compliance friction, Kraken is urging an IRS de minimis crypto tax waivers policy: an inflation-indexed de minimis threshold for small payments, plus anti-abuse guardrails to protect tax integrity. Traders should note a key implementation risk: the near-term push appears focused on payment stablecoins, with lawmakers discussing a $200 exemption for amounts below that level, while broader coverage for assets like BTC may face resistance. The legislative path is the CLARITY Act, but progress has stalled due to markup hurdles. If deadlines slip, the de minimis crypto tax waivers for small transfers could be delayed to 2027. Kalshi data cited in the article shows low odds for faster relief on crypto capital gains taxes this year (~7%), versus higher odds for CLARITY passage (~46%). Overall, the update suggests limited near-term policy catalysts, but potentially less compliance cost over time for small transactions and transfers.