Heads of major crypto firms are raising concerns about California's proposed 5% billionaire wealth tax. Their argument is straightforward: such a levy could push both founders and investment capital out of the state, potentially weakening the region's position as a crypto and tech hub.

The worry isn't just about money leaving—it's about the ripple effects on innovation. When key players relocate and funding dries up, startup ecosystems suffer. For an industry already navigating complex regulatory landscapes, losing a major innovation center like California would be a significant blow.

Whether this tax actually passes and how crypto communities respond remains to be seen. But the debate highlights a broader tension: how can regions attract and retain blockchain talent while managing fiscal needs?