Crypto Billionaires Target California Wealth Tax With $40M Political Push

Two high-profile crypto figures are preparing to pour tens of millions of dollars into California politics, aiming to reshape the state Legislature by backing moderate, business-friendly candidates and countering the influence of labor unions.

The effort, operating under the banner of Grow California, is backed by Chris Larsen, a longtime Democratic donor and co-founder of Ripple, and Tim Draper, a venture capitalist known for his support of Bitcoin (BTC), according to The New York Times.

“The government unions do a great job,” Larsen reportedly told the outlet. “But that’s going to clash with a lot of the things that are going to make California successful if there’s no counterforce,” he added.

The move comes as Silicon Valley donors grow increasingly alarmed by a proposed California wealth tax, backed by a healthcare union, that would levy taxes on the assets of the state’s richest residents if approved by voters. While Larsen and Draper say Grow California was seeded before the proposal emerged, the tax has become a clear rallying point for the initiative.

Related: If history repeats itself, will the US Congress become more pro-crypto in 2026?

Larsen, Draper seed Grow California with $10 million

According to campaign finance filings set to be submitted, Larsen and Draper each contributed $5 million to launch the group last September, per the report. Grow California now claims to have secured roughly $40 million in commitments across independent-expenditure committees and affiliated nonprofit entities. Larsen has said he expects to contribute as much as $30 million of his own money over multiple election cycles.

California Democrats currently hold more than two-thirds of the seats in both legislative chambers, with labor unions often acting as key gatekeepers in competitive races. Grow California plans to focus its resources on a limited number of state legislative contests. The group has said it will stay out of the 2026 gubernatorial race and avoid costly ballot proposition campaigns.