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.
โThe government unions do a great job,โ Larsen reportedly told the outlet. โBut thatโs going to clash with a lot of the things that are going to make California successful if thereโs no counterforce,โ 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 stateโs 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.
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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.
Larsen, whose net worth is estimated at nearly $15 billion, has described Californiaโs political system as overly dominated by unions and special interests. He reportedly pointed to lessons learned from Fairshake, a crypto-backed super PAC that spent heavily in recent federal elections, as proof that sustained political spending can shift outcomes.
Related: Ray Dalio says 2026 US midterm elections may reverse Trump policies
Crypto-backed PACs amass war chests ahead of 2026 US midterms
Crypto-funded PACs are ramping up for the 2026 US midterm elections, as debates over digital asset regulation heat up in Congress. Industry-backed groups say they plan to expand their political influence by backing candidates they view as supportive of crypto and opposing those seen as hostile to the sector.
On Wednesday, Fairshake disclosed it is holding $193 million in cash, boosted by major contributions from Ripple Labs, Andreessen Horowitz and Coinbase. The group said its cash reserves have grown sharply since mid-2025 and revealed intentions to remain active after spending more than $130 million on media buys during the 2024 federal elections.
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