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

Odaily Planet Daily reports that California's proposed "Billionaire Tax Act of 2026" has drawn strong opposition from several figures 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, and negatively impact the local innovation ecosystem.

Bitwise CEO Hunter Horsley and Kraken co-founder Jesse Powell, among others, pointed out that the wealth tax, partly levied on unrealized gains, could force 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, potentially leading to a shift in related spending, employment, and philanthropic activities.

Nic Carter, founding partner of Castle Island Ventures, and Jeff Park, chief investment officer of ProCap BTC, also believe that in a context of high capital mobility, a one-time wealth tax may signal to the market the possibility of further taxation in the future. Meanwhile, Fredrik Haga, co-founder of Dune, cited Norway as an example, stating that a similar tax system led to the emigration of high-net-worth individuals, with the actual tax revenue effect falling short of expectations.

Supporters of the proposal include California's 17th Congressional District Representative Ro Khanna, who believes the tax revenue will be used to improve childcare, housing, and education, thereby promoting American innovation. However, opponents point to a California audit report that revealed issues with the efficient use of public funds, questioning whether the increased tax revenue will truly be used for its intended goals. (Cointelegraph)