Two prominent figures in the cryptocurrency sector, Chris Larsen and Tim Draper, have committed substantial funds to a new political initiative in California designed to reshape the state’s legislature. The initiative, known as Grow California, seeks to challenge the wealth tax proposals backed by various labor unions, which they argue could hamper the state’s economic growth.

Larsen, the co-founder of Ripple and a long-time donor to Democratic causes, along with Draper, a well-known venture capitalist and supporter of Bitcoin, aim to support moderate candidates. Each has contributed $5 million to the campaign since its inception last September, with overall commitments approaching $40 million.

“The government unions do a great job,” Larsen reportedly stated. “But that’s going to clash with a lot of the things that are going to make California successful if there’s no counterforce.”

The political climate has become more contentious with proposals for a wealth tax directed at the wealthiest Californians. Although Larsens and Draper assert that this initiative predates the tax proposal, it has emerged as a focal point for their agenda.

Grow California plans to concentrate on a select few legislative races while avoiding involvement in the upcoming 2026 gubernatorial elections, focusing instead on maximizing the impact of their contributions to the candidates aligned with their business-friendly vision.

As more crypto-backed political action committees prepare for the 2026 US midterms, tensions rise over regulatory debates concerning digital assets in Congress. Fairshake, another crypto-funded PAC, has declared it holds $193 million in cash reserves, positioning itself prominently in the electoral landscape.