California is proposing a 5% wealth tax on billionaires, and it’s sparking real concern across the crypto industry.
The tax would apply to unrealized gains — including long-term crypto holdings and startup equity that hasn’t been sold. For founders and early builders, this means paying taxes on paper wealth without having actual liquidity.
Many crypto leaders warn that policies like this could push innovation, capital, and talent outside the US, especially in a world where digital assets are globally mobile.
At the same time, some companies continue expanding into the US, showing the situation isn’t black and white.
The real question remains:
Can the US stay competitive in a global, digital-first economy?
