In a bold political maneuver, Chris Larsen, co-founder of Ripple, and venture capitalist Tim Draper have initiated a political initiative named Grow California, backed by a substantial $40 million investment aimed at reshaping the state legislature. The initiative is primarily a response to a proposed wealth tax that targets ultra-wealthy individuals, generated significant headlines and controversy within California’s political landscape.
The foundation of their initiative began in September 2025, when both founders contributed $5 million each. The move marks one of the most significant financial efforts from the tech and cryptocurrency sectors to influence California’s political framework. The proposed wealth tax, championed by the Service Employees International Union-United Healthcare Workers West, would entail a one-time 5% tax on net worth exceeding $1 billion, a policy that Larsen believes has sparked unprecedented energy in opposition to labor unions. “They woke up the sleeping giant like I have never seen,” Larsen noted, emphasizing the dramatic nature of the political awakening spurred by the union-backed wealth tax.
Larsen, whose personal net worth is estimated to be around $15 billion from his Ripple holdings, indicated that he plans to further invest in Grow California by committing an additional $30 million. Despite the risks, including potential losses in upcoming races, he expressed a long-term commitment to the cause. The group aims to focus on approximately a dozen legislative seats during this election cycle, concentrating their efforts on critical issues such as public safety, homelessness, and budget discipline, as outlined by Shaudi Fulp, the group’s operational lead.
While the initiative’s founders come from the crypto industry, they have emphasized that Grow California is not specifically aligned with the broader interests of the cryptocurrency sector. Larsen reflected on previous political endeavors, particularly mentioning Fairshake, a crypto super PAC that expended over $100 million in influencing Congressional outcomes last year.
As California’s political landscape evolves, the wealth tax discussion and the ongoing gubernatorial race have begun to intertwine. Former Assembly member Ian Calderon has recently entered the 2026 gubernatorial race, promoting a pro-Bitcoin platform and arguing for California to become “the undisputed leader on Bitcoin.” In contrast, current Governor Gavin Newsom has intensified his criticism regarding President Trump’s crypto-focused pardons and is actively supporting efforts in transparency around crypto regulations.
Amid these political developments, California is also progressing in establishing a regulatory framework for digital assets through the Digital Financial Assets Law, set to take effect in July 2025. This law mandates crypto service providers to acquire state licenses, showcasing the state’s effort to bring clarity to its growing digital economy.
While California’s debate over wealth taxation continues, other countries are advancing more defined crypto tax structures. For instance, Japan plans to implement a new tax reform that would lower crypto taxation significantly. Similarly, the European Union introduced the DAC8 tax transparency law, aiming for enhanced reporting and tracking of crypto holdings.
However, California’s trajectory remains uncertain in comparison to these international frameworks, as the state grapples with its evolving crypto tax regime amidst ongoing legislative changes and political battles. The implications of the Grow California initiative may not only impact local politics but could also influence broader discussions around taxation and regulation of the burgeoning cryptocurrency industry.
