- Crypto giants push California’s political landscape towards business-friendly policies.
- Larsen and Draper invest millions to reshape California’s legislature.
- Silicon Valley billionaires rally against proposed wealth tax in California.
Chris Larsen, co-founder of Ripple, and venture capitalist Tim Draper are backing a new political initiative in California with a $40 million investment aimed at reshaping the state Legislature. Through their organization, Grow California, both figures are looking to back moderate, business-friendly candidates while countering the influence of labor unions, which have historically dominated California’s political landscape.
This effort, supported by two of the state’s most prominent crypto figures, is partly a response to mounting concerns over a proposed wealth tax that would impact the state’s wealthiest residents. Grow California was seeded with a $10 million investment from Larsen and Draper, each contributing $5 million. According to campaign finance filings, the group has since raised around $40 million, with Larsen expected to contribute up to $30 million over the coming years.
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Larsen, who has long been involved in Democratic politics, has voiced concerns over the strong influence of government unions on California’s political system. He believes that unions’ power could clash with what is necessary for the state’s economic success. Draper, a vocal supporter of Bitcoin (BTC) and blockchain technology, shares Larsen’s frustration with the state’s political dynamics. Together, they hope to create a more balanced political landscape by supporting candidates who favor pro-business and moderate policies.
In particular, Grow California’s focus will be on state legislative races rather than the upcoming 2026 gubernatorial election. By concentrating on these key positions, the group aims to influence the legislative process and reduce the grip that labor unions hold over the state’s policymaking. The organization’s goal is to give moderate candidates a fair chance, enabling a more balanced political environment.
Impact of Silicon Valley’s Influence on California Politics
The involvement of figures like Larsen and Draper comes amid growing alarm in Silicon Valley over proposals like the wealth tax, backed by healthcare unions. The tax could target the assets of the state’s wealthiest residents, including high-profile figures in the tech and crypto industries. This has made it clear that the stakes are high for tech investors, who view the tax as a threat to their financial interests.
Moreover, the move reflects a broader trend in California’s political landscape, where tech billionaires and venture capitalists have started to play a larger role. Larsen and Draper’s campaign is part of a growing effort by crypto-backed PACs to increase their influence in state and federal politics. Groups like Fairshake, which raised $193 million, are leading the charge to support candidates favorable to the crypto industry. The financial backing from Ripple Labs, Andreessen Horowitz, and Coinbase showcases the growing financial power these groups hold in the political arena.
The Rise of Crypto-Backed Political Action Committees (PACs)
These developments signal that the crypto sector, once viewed as a niche interest, is now a powerful political force. With large-scale financial backing, crypto moguls are beginning to shape the political landscape, pushing for policies that align with their business goals and economic priorities. Crypto-backed PACs, like Fairshake, are increasingly important players in the political sphere, with large contributions aimed at influencing the outcome of key elections and legislation.
As the 2026 midterm elections approach, these PACs are ramping up their efforts, leveraging their financial muscle to support candidates who understand the importance of crypto and digital assets. This financial influence is expected to grow as the industry seeks to protect and expand its interests in an evolving regulatory environment.
Larsen and Draper’s Long-Term Vision for California Politics
In conclusion, the growing involvement of crypto tycoons like Larsen and Draper in California’s political sphere represents a new chapter in the state’s legislative history. Their efforts to counter the power of labor unions could lead to significant political shifts, especially if they manage to influence key state races in the coming years. With their financial backing and influence, they are poised to reshape California’s political future, potentially altering the balance of power in the state’s government.
