Ripple (XRP) co-founder Chris Larsen and venture capitalist Tim Draper are deploying approximately $40 million through a new political organization called Grow California to support moderate legislative candidates and counter union-backed proposals for a wealth tax on the state's richest residents.
What Happened: Political Initiative
Larsen and Draper each contributed $5 million last September to launch Grow California, according to campaign finance filings. The organization has secured roughly $40 million in commitments across independent-expenditure committees and affiliated nonprofit entities.
Larsen, whose net worth is estimated at nearly $15 billion, told The New York Times the effort aims to counter what he views as excessive union influence in state politics.
"The government unions do a great job," Larsen said. "But that's going to clash with a lot of the things that are going to make California successful if there's no counterforce."
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Why It Matters: Wealth Tax
The initiative comes as a healthcare union-backed proposal for a California wealth tax would levy taxes on assets of the state's wealthiest residents if approved by voters. While Larsen and Draper stated Grow California was established before the tax proposal emerged, the measure has become a focal point for the organization's efforts.
Larsen said he expects to contribute as much as $30 million of his own funds over multiple election cycles. The group plans to focus resources on state legislative contests while avoiding the 2026 gubernatorial race and ballot proposition campaigns, according to the report.
Draper is known for his support of Bitcoin (BTC). Larsen pointed to Fairshake, a crypto-backed super PAC that spent more than $130 million on media buys during the 2024 federal elections, as evidence that sustained political spending can shift electoral outcomes. Democrats currently hold more than two-thirds of seats in both California legislative chambers.
Industry analysts suggest the 2026 midterm elections could reshape cryptocurrency policy if Republicans lose congressional seats. A Democratic majority could potentially reverse elements of the current administration's approach to digital asset regulation, according to policy experts monitoring the sector.