Cryptocurrency exchange Kraken filed 56 million crypto tax forms in 2025. Half were for amounts below $10 and three quarters below $50. One third were below a single dollar. That’s a big problem for crypto owners when it comes to filing taxes, as each of those transactions requires them to fill out a capital gains report. “These forms were not sent to sophisticated traders who made big returns from crypto,” Kraken said in an April 22 report. “The vast majority of the forms are for staking rewards measured in fractions of a cent, small purchases, and routine activity. Every single one generates a form that a real person is now…
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Buying Coffee With Bitcoin Is a Tax Burden: Cato
A daily cup of coffee could bring 100 pages of tax forms
With the proliferation of crypto spending debit cards, it’s easy enough to buy a cup of coffee with your bitcoins. The problem is that the purchase comes with a huge tax headache. Crypto sales of any kind, including using bitcoins for purchases, are treated as capital gains for tax purposes. So if you buy that cup of coffee every day, you’re looking at over 100 pages of tax forms, according to Nicholas Anthony, a research fellow at the Cato Institute, a libertarian think tank. Saying “the process is almost tailor-made to discourage the use of alternative currencies,” Anthony noted that “capital gains taxes require you to tell the Internal Revenue…
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Virginia Will No Longer Sell Off Abandoned Crypto
Escheated tokens will be held in-kind for owners
Did you know that many states will seize your crypto if you leave it untouched for too long? It’s called escheat, and the same thing can happen to bank account balances and unspent gift card balances left untouched long enough to be considered abandoned. It’s not exactly expropriation, as the states generally hold escheated funds for consumers to claim. But in the case of crypto, states usually sell off the crypto upon receiving it and keep the fiat funds for owners to claim. Which means two things. One, you lose any potential upside as the price of cryptocurrencies rises over time. And two, the sale may trigger a tax liability…
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Banks Say White House Wrong on Stablecoin Rewards
Stablecoin yield could devastate small banks
The banking industry struck back at a White House report that banning stablecoin yield wouldn’t harm banks, saying it asked the wrong question and thus got the wrong answer. On April 8, the White House Council of Economic Advisors argued that banning yield — interest — on stablecoins would do little to help banks, especially community banks, and could instead deprive consumers of better returns. In an April 13 reply in the American Banking Association’s Banking Journal, the ABA’s chief economist, Sayee Srinivasan, and vice president for banking and economic research, Yikai Wang, said that the main “policy concern is not whether prohibiting yield on payment stablecoins would help bank…
