Coinbase CEO Brian Armstrong has sharply criticized California’s proposed 2026 Billionaire Tax Act, calling the measure ‘deeply un-American’ and an ‘unconstitutional confiscation of private assets,’ while confirming the company is considering leaving the state.
Speaking on the Katie Miller Podcast — hosted by the wife of White House deputy chief of staff Stephen Miller — Armstrong argued the ballot initiative, set for November 2026, would confiscate 5% of any billionaire’s holdings, including unrealized gains in public and private securities. He warned that targeted individuals could be forced to sell assets or borrow against them, and said the approach resembles ‘a third-world country’ and a dangerous path.
The measure would apply to affluent individuals and married couples who are California residents as of January 1, 2026, and could open the door to future taxes on people who are not billionaires. Armstrong said Coinbase is evaluating ‘any and all options in terms of relocation.’ Coinbase currently employs around 1,000 people in the state.
Research cited in coverage indicates the proposal has already triggered roughly $2 trillion in net wealth flight, with Texas and Florida among the biggest beneficiaries. A Hoover Institution report from March found nearly 30% of the tax’s targets had already left California. The tax was projected to raise about $40 billion over five years, far below the $100 billion goal, and could result in permanently lower state revenues. California has also faced criticism over tens of billions of dollars lost to health care fraud and a high-speed rail project that has spent billions without laying high-speed track on its main line.
The criticism comes despite Coinbase’s mixed record on leaving California. In 2021, Armstrong announced the permanent closure of the company’s San Francisco offices, but in 2025 Coinbase signed a four-year lease for 150,000 square feet in the same city.
Armstrong’s media appearance also had political dimensions. He has backed Donald Trump and other Republican politicians through personal and corporate funds, supported White House East Wing renovations and a military parade, and enabled Trump’s memecoin on Coinbase. During the podcast he claimed US life expectancy a century ago was 35 years — historical data puts the 1924 average closer to 57 — and said there are ‘millions of crypto voters’ without presenting evidence. He also argued artificial intelligence does not need regulation.
Observers say Armstrong’s outreach to Trump-aligned audiences is tied to building political capital for the CLARITY Act, legislation that would define a federal regulatory framework for digital assets, which he hopes to see passed before the end of the year.
