Two prominent figures from the crypto industry are preparing to invest tens of millions of dollars into California politics, seeking to reshape the state Legislature by supporting moderate, business-friendly candidates and pushing back against the influence of labor unions.
The initiative, operating under the name Grow California, is backed by Ripple co-founder and longtime Democratic donor Chris Larsen, along with venture capitalist and Bitcoin supporter Tim Draper, according to a report by The New York Times. Larsen argued that while government unions are effective advocates, their priorities can conflict with policies he believes are necessary for California’s long-term economic success without a counterbalance.
The effort comes amid growing concern among Silicon Valley donors over a proposed California wealth tax backed by a healthcare union. If approved by voters, the measure would tax the assets of the state’s wealthiest residents. Although Larsen and Draper say Grow California was launched before the proposal surfaced, the tax has emerged as a key rallying issue for the group.
Larsen and Draper seed Grow California with $10 million
Campaign finance filings expected to be submitted show that Larsen and Draper each contributed $5 million to launch Grow California last September. The organization now claims to have secured roughly $40 million in total commitments through independent-expenditure committees and affiliated nonprofit groups. Larsen has said he could ultimately contribute up to $30 million of his own funds over several election cycles.
Democrats currently control more than two-thirds of the seats in both chambers of the California Legislature, with labor unions often playing a decisive role in competitive races. Grow California plans to concentrate its spending on a limited number of legislative contests, while staying out of the 2026 gubernatorial race and avoiding expensive ballot initiative campaigns.
Larsen, whose net worth is estimated at nearly $15 billion, has criticized California’s political system as being overly influenced by unions and special interests. He reportedly cited the experience of Fairshake—a crypto-backed super PAC that spent heavily in recent federal elections—as evidence that sustained political investment can shift electoral outcomes.
Crypto-backed PACs build war chests ahead of 2026 midterms
More broadly, crypto-funded political action committees are gearing up for the 2026 US midterm elections as debates over digital asset regulation intensify in Congress. Industry-backed groups say they plan to expand their influence by supporting candidates viewed as favorable to crypto and opposing those seen as hostile to the sector.
On Wednesday, Fairshake disclosed that it holds $193 million in cash, bolstered by major contributions from Ripple Labs, Andreessen Horowitz and Coinbase. The group said its reserves have grown significantly since mid-2025 and confirmed it intends to remain active after spending more than $130 million on media campaigns during the 2024 federal elections.
