California's proposed 5% wealth tax on billionaires, set for 2026, is facing strong opposition from cryptocurrency executives. The tax targets individuals with a net worth exceeding $1 billion, aiming to fund healthcare and social programs. Crypto leaders, including Bitwise's Hunter Horsley and Kraken's Jesse Powell, argue the tax could drive capital and talent out of the state. Critics like Nic Carter and Jeff Park express concerns about setting a precedent for future tax increases. Proponents, such as Representative Ro Khanna, argue the tax will provide essential funding for childcare and education. However, skeptics question the state's ability to effectively manage and utilize the additional revenue. The debate highlights the tension between fiscal policy and the crypto industry's growth in California.