California Wealth Tax Faces $40M Opposition from Cryptocurrency Industry Leaders
Through their Grow California initiative, Ripple's Chris Larsen and investor Tim Draper are launching a political campaign to challenge union-supported proposals for wealth taxation.
A pair of prominent cryptocurrency industry billionaires are gearing up to invest significant capital into California's political landscape, with plans to transform the state's legislative makeup through support for centrist, pro-business contenders while diminishing labor union dominance.
Known as Grow California, this political initiative has received backing from Chris Larsen, a long-standing supporter of Democratic causes and Ripple's co-founder, alongside Tim Draper, an investment capitalist recognized for his advocacy of Bitcoin (BTC), as reported by The New York Times.
"The government unions do a great job. But that's going to clash with a lot of the things that are going to make California successful if there's no counterforce."
Chris Larsen
This political initiative emerges at a time when technology industry donors in Silicon Valley are becoming progressively concerned about a California wealth tax plan, championed by a healthcare labor union, which would impose levies on the assets held by California's wealthiest individuals should voters give it approval. Though Larsen and Draper indicate Grow California was established prior to the tax proposal's emergence, the taxation measure has evolved into an obvious focal point driving the initiative forward.
Larsen, Draper seed Grow California with $10 million
Based on campaign finance documentation scheduled for filing, both Larsen and Draper provided $5 million contributions each to establish the organization last September, according to the report. Grow California currently asserts it has obtained approximately $40 million in pledged funding across independent-expenditure committees and associated nonprofit organizations. Larsen has indicated his willingness to invest up to $30 million from his personal wealth across several election cycles.
Members of California's Democratic Party presently control greater than two-thirds of legislative seats across both the state Senate and Assembly, with labor unions frequently serving as critical decision-makers in tight electoral contests. Grow California intends to direct its financial resources toward a select number of state legislative competitions. The organization has announced it will refrain from involvement in the 2026 race for governor and will avoid expensive ballot initiative campaigns.
Larsen, whose personal wealth is valued at close to $15 billion, has characterized California's political landscape as excessively controlled by unions and special interest groups. He allegedly referenced insights gained from Fairshake, a cryptocurrency-supported super PAC that deployed substantial funds in recent federal elections, as evidence that continuous political expenditures can alter electoral results.
Crypto-backed PACs amass war chests ahead of 2026 US midterms
Political action committees financed by the cryptocurrency industry are preparing for the 2026 US midterm elections, while discussions surrounding digital asset regulation intensify within Congress. Groups supported by the industry indicate they intend to broaden their political reach by supporting candidates they perceive as favorable to crypto and challenging those they consider antagonistic to the industry.
On Wednesday, Fairshake revealed it is maintaining $193 million in cash reserves, strengthened by substantial contributions from Ripple Labs, Andreessen Horowitz and Coinbase. The organization stated its cash holdings have increased dramatically since mid-2025 and disclosed plans to continue operations following expenditures exceeding $130 million on media purchases throughout the 2024 federal elections.