Crypto heavyweights slam proposed 5% wealth tax in California
Crypto executives, including Bitwise CEO Hunter Horsley and Castle Island Ventures founding partner Nic Carter, have pushed back against a proposed 5% billionaire tax in California.
A proposed 5% tax on billionaires’ wealth in California has drawn a strong response from crypto executives, who argue it would trigger an exodus of entrepreneurs, capital flight, and would be wasted anyway.
The initiative, known as the 2026 Billionaire Tax Act, seeks to add a ballot proposal for a 5% tax on net wealth above $1 billion to help fund the health care system and state assistance programs, according to the SEIU United Healthcare Workers West union.
As the proposed wealth tax is partly assessed against unrealized gains, some billionaires may need to sell stock or parts of their businesses to raise funds to pay the tax, which would either be payable in one installment, or over five years with interest payments.
Senior figures in the crypto industry, including Bitwise CEO Hunter Horsley and Kraken co-founder Jesse Powell, argue that the measure would only result in billionaires leaving the state, with a negative overall effect.
“I promise you this will be the final straw. Billionaires will take with them all of their spending, hobbies, philanthropy and jobs. Solve the waste/fraud issue,” Powell said in an X post on Sunday.
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