Key Insights:
- The Grow California wealth tax debate is driving a $40M campaign to support moderate lawmakers.
- The crypto donors, Chris Larsen and Tim Draper, aim at approximately a dozen races in the Assembly and the Senate.
- The group does not engage in statewide programs and ballot battles but rather in policy impact.
Grow California has become a new party that operates in the state, with significant funding from Ripple co-founder Chris Larsen and venture capitalist Tim Draper, as a debate over a proposed wealth tax continues.
Grow California and the Wealth Tax Catalyst
The project, an investment of about $40 million, is set to affect state legislative contests by sponsoring moderate candidates and pushing back against the expansion of organized labor in Sacramento.
However, its formation reflects a broader mobilization by technology- and crypto-linked donors in response to a ballot proposal that would impose new taxes on ultra-high-net-worth individuals.
The effort was first disclosed by The New York Times, which reported that Larsen and Draper each committed $5 million to the project in September.
According to the report, the initiative represents one of the largest recent political investments by Silicon Valley figures focused specifically on California’s legislative balance rather than national races or ballot propositions.
Moreover, Grow California was organized in response to a proposed ballot measure backed by the Service Employees International Union-United Healthcare Workers West. The measure would levy a one-time 5% tax on net worth exceeding $1 billion.
The proposal would apply not only to liquid holdings but also to unrealized gains on assets that have not yet been sold.
Larsen stated that the wealth tax proposal served as a wake-up call for donors who had previously remained on the sidelines of state politics.
According to The New York Times, Larsen’s personal net worth is estimated at nearly $15 billion, largely tied to Ripple holdings and other crypto-related assets.
He told the newspaper that he expects to personally contribute up to $30 million to Grow California over time. Larsen also acknowledged that achieving the group’s objectives could take multiple election cycles, including beyond the upcoming November contests.
Targeting Legislative Seats, Not Statewide Races
Grow California’s strategy focuses on a limited number of state legislative districts rather than on high-profile statewide campaigns.
The organization plans to target approximately a dozen Assembly and Senate seats during the current election cycle. Its policy emphasis includes public safety, homelessness, and budget discipline, according to Shaudi Fulp, a former Sacramento lobbyist overseeing daily operations.
Despite Democrats holding more than two-thirds of seats in both legislative chambers, Grow California has indicated it will not participate in the 2026 gubernatorial race.
Moreover, it also plans to avoid costly ballot proposition campaigns, concentrating resources instead on select legislative contests where outcomes could influence policy debates.
Learnings on Past Crypto-Linked Political Expenditures.
Larsen admitted that the organization of Grow California was based on the lessons of Fairshake, a crypto-backed super PAC that used over a hundred million dollars in the previous cycle of federal elections.
Fairshake played a significant role in shaping the composition of the current U.S. Congress by supporting candidates viewed as favorable to digital asset policy clarity.
Draper, known for his public advocacy of Bitcoin and his past campaign to divide California into multiple states, did not respond to requests for comment regarding his role in Grow California. His financial backing nonetheless positions him as a central figure in the initiative’s formation.
In public remarks cited by The New York Times, Larsen Timesorganized labor has been effective in state politics, noting the consistency of union participation in elections and policy debates.
Wider Political as well as Crypto Policy Environment.
The debate on wealth tax in California is playing out with a resurgence of digital asset policy politics. Ian Calderon, a former assembly member, has joined the 2026 gubernatorial campaign with a platform that brings in the use of Bitcoin.
Calderon, who served as Assembly Majority Leader from 2016 to 2020, said in his campaign announcement that he wants California to become a global leader in Bitcoin.
At the same time, Governor Gavin Newsom has increased scrutiny of crypto-related developments at the federal level.
His administration recently launched a state-backed website highlighting individuals it describes as “criminal cronies,” including figures who have received crypto-related pardons.
The site references Binance founder Changpeng Zhao, who was pardoned in October after serving 4 months for Bank Secrecy Act violations, and Ross Ulbricht, whose life sentence for Silk Road operations was commuted.
