Two prominent figures from the cryptocurrency sector are preparing to inject tens of millions of dollars into California politics to influence legislative outcomes.
The political effort operates under the banner of Grow California, a group positioned as moderate and business friendly.
The initiative is backed by Ripple co-founder Chris Larsen and venture capitalist Tim Draper, according to reports.
Both backers aim to counter the growing influence of labour unions within the California Legislature.
The move reflects rising concern among Silicon Valley donors about policies seen as hostile to wealth creation.
A proposed California wealth tax has become a key flashpoint for the initiative’s supporters.
The proposal, backed by a healthcare union, would tax the assets of the state’s wealthiest residents if approved by voters.
Larsen and Draper have said the group was formed before the wealth tax proposal surfaced, though it has since become a rallying issue.
“The government unions do a great job, but that’s going to clash with a lot of the things that are going to make California successful if there’s no counterforce,”
Chris Larsen said.
Campaign finance filings indicate Larsen and Draper each contributed $5m to seed Grow California last September.
The group now claims to have secured around $40m in commitments through political committees and affiliated non-profit entities.
Larsen has stated he expects to contribute up to $30m of his own funds across several election cycles.
California Democrats currently control more than two-thirds of seats in both legislative chambers.
Labour unions often act as decisive gatekeepers in competitive state legislative races.
Grow California plans to focus on a small number of targeted legislative contests rather than broad campaigns.
The group has said it will not participate in the 2026 gubernatorial race.
It has also ruled out involvement in expensive statewide ballot proposition campaigns.
Larsen has described California’s political system as overly influenced by unions and special interests.
He has pointed to lessons from previous crypto-backed political efforts as evidence that sustained spending can alter outcomes.
The developments come as crypto-funded political action committees build significant reserves ahead of the 2026 US midterm elections.