Crypto billionaires warn California that proposed 'billionaire tax' could prompt departures

California is proposing a one-time 5% 'billionaire tax' in 2026 that would include startup shares and crypto holdings, and several tech and crypto founders have warned it could prompt relocation of wealthy builders while crypto markets showed little immediate reaction.

California is proposing a one-time wealth levy in 2026 aimed at very large fortunes. The plan would count startup equity and crypto holdings in the tax base. Several tech and crypto founders have publicly warned the measure could lead some wealthy builders to sell assets or move out of state. This discussion is occurring alongside new state and federal actions that affect crypto businesses. Key points: - The proposal described as the "Billionaire Tax Act" would levy a one-time 5% charge on very large fortunes and would include startup shares and cryptocurrency holdings. - Founders such as Palmer Luckey and Dylan Field have said the tax could force sales of illiquid company shares or encourage relocation of wealthy founders. - California also passed the Digital Financial Assets Law, effective July 2025, and reports said crypto markets showed little immediate reaction to the tax headlines. Summary: The proposed one-time tax could influence where founders, capital, and startups decide to base operations, which may affect hiring and where new projects launch. Undetermined at this time.