Two high-profile figures in the cryptocurrency industry are preparing to pump tens of millions of dollars into California politics, aiming to reshape the state Legislature by supporting moderate, business-friendly candidates and countering union influence.
The effort, operating under the Grow California banner, 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 to The New York Times.
“The government unions are doing a great job,” Larsen reportedly told the website. “But it will interfere with many of the factors that will make California successful if there is no countervailing force,” he added.
The move comes as Silicon Valley donors become increasingly concerned about California’s proposed estate tax, backed by a health care union, which would collect taxes on the wealth of the state’s wealthiest residents if approved by voters. Although Larsen and Draper say Grow California was initiated before the proposal emerged, the tax became the clear focus of the initiative.
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Larsen, Draper seed Grow California for $10 million
Larsen and Draper each contributed $5 million to launch the group last September, according to a report to be filed in campaign finance documents. Grow California currently says it has secured approximately $40 million in commitments to independent spending committees and affiliated nonprofit entities. Larsen said he expects to contribute as much as $30 million of his own funds over various election cycles.
California Democrats now hold more than two-thirds of the seats in both legislative chambers, and labor unions often serve as key gatekeepers in competitive races. Grow California plans to focus its resources on a circumscribed number of state legislative contests. The group said it would not enter the 2026 governor’s race and would avoid costly campaigning on the ballot proposition.
Larsen, whose net worth is estimated at nearly $15 billion, described California’s political system as overly dominated by labor unions and special interests. He reportedly pointed to lessons learned from Fairshake, a cryptocurrency-backed super PAC that spent heavily in the last federal election, as evidence that sustained political spending can change outcomes.
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Crypto-backed PACs are building up war chests ahead of the 2026 US midterms
Crypto-funded PACs are growing in strength ahead of the 2026 U.S. midterm elections as debates in Congress over regulating digital assets intensify. Industry-backed groups say they plan to expand their political influence by supporting candidates they see as supporting cryptocurrencies and opposing those perceived as hostile to the sector.
On Wednesday, Fairshake disclosed it had $193 million in cash, boosted by significant contributions from Ripple Labs, Andreessen Horowitz and Coinbase. The group said its cash reserves have increased sharply since mid-2025 and revealed it intends to remain dynamic after spending more than $130 million on media purchases during the 2024 federal election.
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