California’s Proposed ’Billionaire Tax’ Sparks Crypto and Tech Exodus Fears

High-profile figures in crypto and tech are sounding alarms over California’s proposed Billionaire Tax Act, a 2026 ballot initiative that would impose a one-time 5% levy on net wealth exceeding $1 billion—including unrealized gains. The measure, backed by SEIU-UHW, aims to fund healthcare and public services but has drawn fierce opposition from industry leaders who warn it could trigger capital flight.

Critics argue the tax WOULD force asset sales to cover liabilities on paper gains, disproportionately targeting holders of volatile assets like cryptocurrencies. Kraken co-founder Jesse Powell called it 'the final straw,' suggesting billionaires may relocate spending and operations. Bitwise CEO Hunter Horsley echoed concerns about destabilizing local investment.

The debate highlights growing tension between progressive fiscal policies and the mobility of digital asset wealth. With no cash realization required, the proposal could uniquely impact crypto holders whose net worth fluctuates dramatically with market cycles.