Crypto industry executives oppose California's proposed 5% "billionaire wealth tax" bill.

California's proposed "Billionaire Tax Act of 2026" has drawn strong opposition from many in the crypto industry. The bill proposes a 5% wealth tax on individuals with a net worth exceeding $1 billion, with the proceeds intended to fund the healthcare system and state-level aid programs. Industry experts believe this policy could lead to an outflow of entrepreneurs and capital, negatively impacting the local innovation ecosystem. Bitwise CEO Hunter Horsley and Kraken co-founder Jesse Powell, among others, point out that the wealth tax is partly based on unrealized gains, potentially forcing taxpayers to sell shares or business assets to raise funds. Powell stated on the X platform that this measure could be the "last straw" preventing billionaires from staying in California, with related spending, employment, and philanthropic activities potentially shifting as a result. Castle Island Ventures founding partner Nic Carter and ProCap BTC chief investment officer Jeff Park also believe that in a context of high capital mobility, a one-time wealth tax could signal to the market the possibility of further taxation in the future. Meanwhile, Dune co-founder Fredrik Haga cited Norway as an example, stating that a similar tax system led to the exodus of high-net-worth individuals, with the actual tax revenue falling short of expectations. Supporters of the proposal include California's 17th Congressional District Representative Ro Khanna, who believes the taxes will be used to improve childcare, housing, and education, thereby promoting American innovation. However, opponents point to past California audit reports revealing issues with the efficient use of public funds, questioning whether the increased tax revenue will truly be used for its intended goals. (Cointelegraph)