Crypto executives criticize California's proposed 5% wealth tax

PANews reported on December 29th, citing Cointelegraph, that a proposed 5% wealth tax on the net worth of billionaires in California has drawn strong opposition from cryptocurrency industry executives. The proposal, titled the "Billionaire Tax Act of 2026," would tax individuals or entities with a net worth exceeding $1 billion at 5% to fund healthcare and state aid programs. Because the tax would partially apply to unrealized gains, it could force wealthy individuals to sell assets to pay the tax. Industry figures such as Bitwise CEO Hunter Horsley and Kraken co-founder Jesse Powell have publicly opposed the move, arguing it would lead to an outflow of entrepreneurs and capital and questioning the efficiency of government spending. U.S. Representative Ro Khanna (California's 17th District) defended the proposal, stating that the funds would be used to improve childcare, housing, and education, contributing to American innovation.