Chris Larsen and Tim Draper have pledged $40 million to combat the growing influence of labor unions in California

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Highlights

According to The New York Times, Ripple co-founder Chris Larsen and venture capitalist Tim Draper are among the main donors to the political initiative Grow California.
The crypto billionaires have joined forces to oppose a wealth tax bill promoted by the California Nurses Association.
Major crypto entrepreneurs are increasingly seeking to influence politics by investing in political action committees (PACs) that help shape government bodies with politicians or like-minded individuals who are loyal to the sponsors.

Two prominent figures from the crypto industry are preparing to spend tens of millions of dollars on California politics, seeking to reshape the state legislature by supporting moderate, business-friendly candidates and countering what they view as excessive union influence.

According to The New York Times, Ripple co-founder and longtime Democratic donor Chris Larsen, along with venture capitalist Tim Draper, known for his support of Bitcoin, are already funding the new political initiative Grow California, which is focused on blocking union-backed wealth tax proposals.

“Government unions do great work… But without a counterforce, this would conflict with many things that make California successful,” Larsen told the publication.

Campaign finance filings show that Larsen and Draper each contributed $5 million to launch the group in September last year. Grow California now says it has secured roughly $40 million in commitments from independent committees and affiliated nonprofit organizations. Larsen also stated that he expects to contribute up to $30 million of his own funds over multiple election cycles.

The crypto-funded backing of Grow California comes amid growing concern among Silicon Valley donors over a proposed wealth tax in California, supported by a healthcare workers’ union, which would tax the assets of the state’s wealthiest residents if approved by voters.

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While Larsen and Draper say the Grow California initiative predates the wealth tax proposal, the tax has become a clear unifying issue for the group.

Currently, California Democrats control more than two-thirds of the seats in both chambers of the state legislature, with unions often acting as powerful brokers in competitive races. Grow California plans to focus its resources on a limited number of legislative contests and has said it will not participate in the 2026 gubernatorial election or costly ballot initiative campaigns.

Sustained political spending shifts power

Larsen, whose net worth is estimated at nearly $15 billion, described California’s political system as being overly dominated by unions and special interest groups.

His interest in funding the initiative reportedly grew after working with Fairshake, a crypto-focused super PAC active in recent federal elections, which he cited as evidence that sustained political spending can change outcomes.

Crypto-funded political action committees are already ramping up ahead of the 2026 U.S. midterm elections, as debates over digital asset regulation intensify in Congress. Industry-backed groups say they plan to expand their political influence by supporting candidates they view as crypto-friendly and opposing those perceived 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 cash reserves have surged since mid-2025 and signaled plans to remain active after spending more than $130 million on media advertising during the 2024 federal elections.

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