Crypto industry executives oppose California's proposed 5% wealth tax for billionaires.

[Crypto Executives Oppose California's Proposed 5% Billionaire Wealth Tax] According to Mars Finance, California's proposed "billionaire tax" bill has drawn strong opposition from several figures in the crypto industry. The proposal suggests levying 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 insiders 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, pointed 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 had led to the emigration 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 tax revenue will be used to improve childcare, housing, and education, thereby benefiting American innovation. However, opponents also point out that a California audit report revealed issues with the efficiency of public fund usage, questioning whether the increased tax revenue can truly be used for its intended goals.