Two of the cryptocurrency and venture capital industry's most influential figures, Ripple co-founder Chris Larsen and venture capitalist Tim Draper, are pouring tens of millions of dollars into a new political initiative aimed at reshaping California's legislature. Their organization, Grow California, has raised approximately $40 million in commitments with the goal of backing moderate, business-oriented candidates and countering the long-standing political power of organized labor in Sacramento.
The initiative is, in part, a direct response to mounting concerns in Silicon Valley over policy proposals perceived as hostile to capital formation and innovation. A primary catalyst is a proposed wealth tax, endorsed by healthcare unions, which would tax the assets of California's wealthiest residents. "Whoever designed that wealth tax in the unions — wow, they woke up the sleeping giant like I have never seen," Larsen stated, adding, "Business has got to stop being apologetic for being business."
Campaign finance filings show Larsen and Draper each seeded the effort with $5 million in September. Larsen has also committed to investing up to $30 million of his own money over several election cycles. Rather than engaging in costly statewide ballot initiatives or the 2026 gubernatorial race, Grow California will focus its substantial resources on a select number of competitive state legislative races, aiming to directly influence the lawmaking process.
This California push occurs against a backdrop of increasing federal crypto regulatory activity. The U.S. Senate Agriculture Committee recently advanced a bill to grant the Commodity Futures Trading Commission (CFTC) jurisdiction over spot crypto markets, though it passed on a party-line vote. A separate stablecoin regulation bill in the Senate Banking Committee remains stalled. Larsen cited the success of the crypto-backed federal super PAC Fairshake—which raised $193 million from backers like Ripple Labs, Andreessen Horowitz, and Coinbase—as a model of persistent political engagement for the industry.
