News about a 1% wealth tax on crypto is going around after a crypto influencer with over 600,000 X followers posted an alleged letter from US Senator Elizabeth Warren, a Democrat from Massachusetts, to President Joe Biden to “introduce the Cryptocurrency Reporting and Wealth Tax.”

Eljaboom, the poster, highlighted the part about how the supposed legislation will impose a 1% wealth tax on holdings worth over $500,000. The purported legislation would also require holders of cryptocurrency worth over $1,000 to report it to the Internal Revenue Service (IRS). 

The letter, however, is fake. X users, via the platform’s Context feature and as replies to the post, noted that the senator’s name was spelled wrong. Her title and the president’s name are written differently compared to this legitimate letter from 2023.

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Warren did introduce a bill to crack down on crypto in 2023. Called the Digital Asset Anti-Money Laundering Act of 2023, it targets the misuse of cryptocurrencies in activities such as money laundering, drug trafficking, sanctions evasion, and supporting terrorist groups.

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