California Weighs 5% Billionaire Tax, Crypto Pushes Back

Crypto News Regulation

California Floats 5% Billionaire Tax as Crypto Leaders Warn of Exodus

Written by Aaron S.,

Editor-In-Chief

Last Updated: December 29, 2025

Key Takeaways

California is weighing a 2026 ballot measure to impose a one-time 5% tax on residents worth over $1 billion to fund health care and state programs;
If approved, Californians with around $20 billion in wealth could owe about $1 billion total, assessed as of January 1, 2026, and paid over five years;
Crypto and academic critics warn the tax could drive billionaires and activity out of California, citing concerns over waste, fraud, and spending oversight.

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California Floats 5% Billionaire Tax as Crypto Leaders Warn of Exodus

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California is considering a measure that would impose a one-time 5% tax on residents with a net worth of $1 billion or more to fund health care and state programs, initiated by the SEIU United Healthcare Workers West union.

Named the 2026 Billionaire Tax Act, this proposal is currently gathering signatures to qualify for the November 2026 ballot.

Should this pass, individuals with an estimated $20 billion in wealth residing in California as of January 1, 2026, could be subject to a tax of around $1 billion, payable over five years.

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This idea has encountered objections from leaders within the crypto community. Among them, Bitwise CEO Hunter Horsley warned on X that such a tax could prompt billionaires, their economic resources, businesses, and efforts to depart California.

Additionally, Kraken $368.64M co-founder Jesse Powell said in a post on X:

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.

Academics such as Austin Campbell from NYU and corporate leaders like Horsley have pointed to a December finding by the California State Auditor that raised concerns about state spending.

They noted that these challenges cast doubt on whether new revenue would be managed well.

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