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Elizabeth Warren Hoax Letter Exposes Crypto’s Reactionary Side

Last Updated April 23, 2024 1:22 PM
Eddie Mitchell
Last Updated April 23, 2024 1:22 PM
By Eddie Mitchell
Verified by Peter Henn
Key Takeaways
  • A fake letter from a US politician caused a brief stir amongst the crypto community.
  • Easy-to-spot inconsistencies show the letter is fake, revealing an easily-fooled side to crypto.
  • The crypto community needs to do a little more due diligence before reacting to social media posts.

The cryptoverse was briefly duped by a fake letter from US Senator Elizabeth Warren proposing an anti-crypto bill on April 21, 2024.

The letter from the notoriously antagonistic senator requested legislators and regulators to impose mandatory reporting and wealth taxes on crypto holders.

A Crypto Wealth Tax

The letter, written to President Joe Biden, called for him to support a new crypto legislation that would support efforts to bolster the US financial system.

However, the letter only describes a mandatory crypto tax reporting standard for crypto holders. Those holding a value exceeding $1,000 are required to report these assets to the Inland Revenue Service (IRS).

Additionally, it calls for a 1% wealth tax on those with crypto holdings over $500,000. According to the letter, this is to enforce tax compliance and to “effectively monitor” the crypto space.

A Hoax

This was rather quickly shot down as a hoax  by CEO & Co-Founder of crypto policy non-profit, the Satoshi Action Fund, Dennis Porter.

Noting some of the basic inconsistencies in the letter, such as the misspelled name and the lack of publication on the senator’s website, Porter still goes on to say that these words are “beyond believable”.

Other notable crypto influencers, such as DonCyptoDraper, fell for the hoax. This, therefore, highlights just how easy provoking the crypto community can be.

Reasons to be Fearful

But let’s pull back for just a second and remember that Elizabeth Warren shares a special space in the hearts and minds of the crypto community.

She’s a notoriously “anti-crypto” politician, if you can call her that. Though it’s not as though she hates the technology, and is more opposed to the blatant abuses of crypto for criminal or illicit activity.

However, it’s her harsh approach, vocal criticism, and occasional hypocrisy that irks the community the most. In that respect, she’s very similar to Gary Gensler, the Chairman of the U.S. Securities and Exchange Commission (SEC).

Gensler is known for being a rather vocal and heavy-handed enforcer of regulations on crypto. That said, the man himself is now known to troll the community following a post to social media that implied he was resigning from the SEC, much to the joy of crypto.

To the disappointment of crypto, the thread ends with a bang, as the SEC Chair wraps up by saying “And we’re not done”.

The Blurry Line

Crypto is often a bizarre and reactionary space. This is rather ironic, considering its capacity to embrace the most satirical crypto projects, often with millions of dollars.

Looking at cryptocurrencies and their absurd tickers, such as HarryPotterObamaSincInu (BITCOIN), Totally A Rug Pull (TARP), or Tweelon (TWEELON), you’d think the crypto community could take a joke.

The coupling of Elizabeth Warren’s reputation with classic cryptoverse confirmation bias, however, can cause even the brightest of thinkers to clutch their pearls.

The crypto community likes to warn people to “do their own diligence” in the wild world of cryptocurrency. However, it doesn’t appear to practice what it preaches.

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