The crypto community has been abuzz with rumors regarding a proposed 1% wealth tax on substantial Bitcoin (BTC) holders. However, the proposal, highlighted in a letter shared with President Joe Biden, remains unverified. If such a policy were to be implemented, individuals and corporations holding crypto assets over $1,000 would be obligated to report their holdings annually to the Internal Revenue Service (IRS). Additionally, a 1% wealth tax would be levied on entities possessing digital assets exceeding $500,000. While some speculate that this tax could be a regulatory measure or an attempt to mitigate market manipulation by large crypto holders, the bill’s primary goal is reportedly to address wealth disparities in the United States. It’s essential to note that this bill is not officially confirmed and has been dismissed as false. Understanding crypto tax in U.S.: The Biden administration previously proposed a tax increase, including raising the capital gains tax rate to 43.4% for those earning over $1 million. This proposal sparked controversy and faced criticism from venture capital investors like Tim Draper, who raised concerns about its potential negative impact on the economy.