Short Description: Crypto billionaires Chris Larsen and Tim Draper are launching a $40M+ political effort to shape California’s legislature and counter a proposed wealth tax.
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Crypto Titans Invest Millions to Reshape California Politics Amid Wealth Tax Battle
Two of crypto’s most prominent figures, Chris Larsen and Tim Draper, are making a monumental entry into California state politics. Through their new super PAC , Grow California, they aim to back moderate, pro-business candidates and act as a counterweight to the substantial political influence of labor unions. The midterm elections narrative is expanding to state-level battlegrounds, with major financial players signaling they will no longer sit on the political sidelines.
This strategic move comes as Silicon Valley leaders, including Larsen and Draper, are galvanized by a proposed California wealth tax backed by a healthcare union. While the founders insist Grow California was in motion before this tax proposal emerged, it has undeniably become a focal point of their mission. The initiative is starting with significant financial firepower. According to filings, Larsen and Draper each seeded the group with $5 million last September, and total commitments have reportedly reached roughly $40 million. Larsen, with a net worth nearing $15 billion, has stated he could personally contribute up to $30 million over several election cycles, viewing the effort as a necessary “counterforce.”
Crypto-backed political groups are amassing immense war chests ahead of the 2026 cycle. At the federal level, the crypto super PAC Fairshake recently disclosed a $193 million cash reserve, funded by giants like Ripple Labs and Coinbase, after spending over $130 million in 2024. Grow California aims to replicate Fairshake’s model of sustained spending to shift electoral outcomes, but will focus narrowly on select state legislature races, avoiding gubernatorial and costly ballot measures. The group’s emergence highlights a pivotal trend: the crypto industry is no longer just lobbying Washington, D.C.; it’s actively funding campaigns to build a favorable regulatory environment from the ground up, starting in one of America’s most influential and economically pivotal states.
Short Summary: Crypto billionaires Chris Larsen and Tim Draper are investing tens of millions through Grow California, a super PAC aiming to elect moderate California state legislators and oppose a proposed wealth tax. This reflects a strategic expansion of crypto political influence from federal to state levels, with major super PACs building massive war chests for the 2026 midterm elections to shape policy and counter union power in key economic battlegrounds.
