Bitwise CEO and other senior executives in the crypto industry criticize California's proposed 5% wealth tax

Techub News reports that, according to Cointelegraph, a proposed wealth tax targeting billionaires’ net assets in California has sparked strong opposition from cryptocurrency industry executives. The proposal, called the “2026 Billionaire Tax Act,” plans to impose a 5% tax on individuals or entities with net assets exceeding $1 billion to fund healthcare and state assistance programs. Since the tax would partially target unrealized gains, it could force wealthy individuals to sell assets to pay taxes. In response, crypto industry figures such as Bitwise CEO Hunter Horsley and Kraken co-founder Jesse Powell have publicly opposed the measure, arguing that it will lead to the outflow of entrepreneurs and capital, and questioning government spending efficiency. U.S. Representative Ro Khanna (California’s 17th District) defends the proposal, stating that the funds will be used to improve childcare, housing, and education, and will help foster American innovation.