California’s proposed 5% wealth tax on billionaires is sparking debate across the crypto sector. By taxing unrealized gains — including unsold crypto assets and startup equity — the policy could strain founders and long-term investors who are asset-rich but cash-poor. Industry leaders warn it may drive capital and innovation overseas as talent becomes increasingly mobile, even as some companies continue to expand in the US. The situation remains fluid, raising a broader question about America’s ability to compete in an increasingly global digital economy.
