Ripple’s co-founder launched a $40 million campaign against California’s wealth tax
Crypto journalist
Anas Hasan
Crypto journalist
Share
Ripple co-founder Chris Larson and venture capitalist Tim Draper's $40 million political initiative to elect moderate state legislators and oppose unions on a proposed wealth tax will serve as a major backer of Silicon Valley's latest political campaign.
According to the NYT, the effort, which launched in September with $5 million checks from each of its founders, represents one of the tech and crypto sector's largest financial commitments to reshaping California politics.
The ballot measure that sparked this response, sponsored by the Service Employees International Union-United Healthcare Workers West, imposed a one-time 5% tax on net assets above $1 billion, including unrealized gains on unsold assets.
“Who created that wealth tax in the unions – wow,” Larson said. “They woke up the biggest man I've ever seen.
Challenging alliance of tech billionaires with business-friendly candidates
Larson, whose wealth is about $15 billion from Ripple holdings and cryptocurrency assets, said he expects to personally give $30 million to the company.
“If it takes two cycles, fine — that's what we're here for,” he told The New York Times when asked about a potential bankruptcy in November.
The group plans to target about a dozen state legislative seats this year, focusing on public safety, homelessness and fiscal discipline, said Shaudi Fulp, a former Sacramento lobbyist who runs day-to-day operations.
With Democrats controlling more than two-thirds of the seats in both chambers of the Legislature, Grown California won't be involved in the 2026 gubernatorial race or expensive down-ballot campaigns.
Both founders come from the crypto industry, although they think the initiative does not represent the interests of the crypto sector.
Larson acknowledges learning lessons from Fairshake, the Ripple-backed crypto super PAC that has spent more than $100 million to shape the current Congress.
Draper, known for his Bitcoin-themed accessories and his relentless campaign to divide California into multiple states, did not respond to requests for comment.
“Government unions do a great job,” Larson said with a laugh. “I have respect for what they do. They show up and they're there consistently. But that goes against a lot of the things that make California successful if there's no opposing force.”
California's crypto politics is getting tighter between the ruling race and regulatory expansion
The wealth tax debate coincides with former Assemblyman Ian Calderon's entry into the 2026 gubernatorial race on a pro-Bitcoin platform.
Calderon, 39, who served as Assembly Majority Leader from 2016 to 2020, announced his vision for California in a campaign ad video to be the “undisputed leader on Bitcoin.”
Meanwhile, Gov. Gavin Newsom stepped up criticism of President Donald Trump's crypto-related pardons, launching a government-backed website to track what his office calls “criminal criminals.”
The site has commuted the life sentences of Binance founder Changpeng Zhao and Ross Ulbricht for their Silk Road operations, who were pardoned in October after serving four months for violating the Bank Secrecy Act.
Beyond the political battles, California continues to advance digital asset infrastructure through the Digital Financial Assets Act, which will take effect in July 2025 and require all crypto service providers to obtain a state license.
In the year The Assembly unanimously passed AB 1180 in June, creating a pilot program for state toll payments using digital assets through 2031.
International tax frameworks contradict California's uncertain approach.
While California debates a wealth tax, other jurisdictions are implementing more transparent crypto tax structures.
Japan's 2026 tax reform plan will reduce crypto tax from 55% to a flat 20% for certain digital assets held by registered businesses, although exact eligibility criteria are not specified.
Similarly, the EU's DAC8 tax transparency law came into effect on January 1, requiring crypto exchanges and service providers to collect user data and report it to national tax authorities through data exchange between EU countries.
“Tax authorities now have an automated dashboard to track your digital assets,” writes Bitcoin educator Heidi Chakos.
However, like California, South Korea lacks the necessary infrastructure and is often skeptical of a crypto tax system scheduled for January 2027.
Switzerland has postponed the automatic exchange of crypto identification information with foreign tax authorities until 2027, although the legal framework will come into effect in January 2026.
Trending news, recommended popular crypto topics, price predictions
