US Senator Elizabeth Warren introduced the Cryptocurrency Reporting and Wealth Tax Act, which could have a significant impact on the digital assets industry. The proposed mandate is aimed at regulating the growing crypto market in response to concerns about wealth inequality in the United States.

In a letter to President Joe Biden, Senator Warren emphasized the opportunities and challenges that cryptocurrencies have brought to the financial system. She highlighted the innovative solutions and investment opportunities provided by digital assets, but also pointed out the regulatory and enforcement difficulties they pose.

Warren stressed the importance of establishing clear guidelines with reporting requirements to ensure transparency and accountability in the use of cryptocurrencies. The proposed legislation would require individuals, trusts, and entities with crypto holdings valued over $1,000 to report them annually to the Internal Revenue Service (IRS). This measure aims to enhance transparency and enable effective monitoring of tax compliance by the authorities.

One key aspect of Warren's letter is the proposal for a 1% wealth tax on crypto assets exceeding $500,000 held by individuals, trusts, and entities, as a means to address growing wealth inequality.

The Senator underlined the dual nature of cryptocurrencies, highlighting the need for clear guidelines to ensure accountability and transparency in the industry. Warren believes that the proposed legislation strikes a balance between fostering crypto innovation and maintaining a fair tax system in the digital era.

At around the same time as Bitcoin went through its 4th halving event, the Senator introduced this bill, causing some uncertainty in the crypto market. Bitcoin's price did not react as expected by the industry, and the new regulatory proposal is adding further selling pressure to market sentiments.

In the past 24 hours, Bitcoin experienced a 2% surge, with an average price of $66,100 at the time of writing. The 24-hour trading volume of BTC increased by 14% to reach $25 billion. Notably, BTC miners achieved a record daily earnings milestone on the Bitcoin halving day, earning a total of $107.7 million, marking the first instance of daily mining revenue surpassing $100 million.