Crypto Community Fooled by Hoax Elizabeth Warren Letter

• Crypto Twitter was abuzz over a purported letter from Senator Elizabeth Warren proposing a wealth tax on crypto holdings, which was quickly debunked as a hoax.
• The incident highlights the plausibility of such policy proposals given Senator Warren's history of critical views on cryptocurrency.

Scams, hacks, and even hoax instances are common in the world of crypto. And what’s more common is people falling for these hoaxes and scams. Whenever there are such instances, Crypto Twitter goes into detailed and broadened discussions. 

Recently, Crypto Twitter is buzzing about a letter from Elizabeth Warren; a letter that proposes a wealth tax on crypto holdings and mandatory reporting. 

The letter, written to President Joe Biden, advocates for new crypto legislation to strengthen the US financial system. It introduces mandatory crypto tax reporting for holdings over $1,000. Additionally, it proposes a 1% wealth tax on crypto assets exceeding $500,000 to enhance tax compliance and oversight of the cryptocurrency space.

However, this was rather quickly proved to be a hoax by the CEO and co-founder of Satoshi Action Fund, Dennis Porter. The letter containing the proposal was fake and many on X (formerly Twitter) appeared to be fooled by this anti-crypto policy letter, which also misspelled the senator’s first name. 

Now, what’s interesting is that Porter also said “the sad part is that it is beyond believable that she would make these types of policy suggestions.” And it is because her clashes with the cryptocurrency world aren’t new; in fact, the Massachusetts Senator has been a vocal critic of cryptocurrencies for a long time. 

During a Senate hearing on cryptocurrencies in 2018, she expressed that “the challenge is how to nurture productive aspects of crypto while protecting consumers.” Since then, her stance has noticeably toughened.

Edited by Harshajit Sarmah