RIPPLE CO-FOUNDER HEADS $40 MILLION DRIVE AGAINST PROPOSED CALIFORNIA WEALTH TAX

Ripple co-founder Chris Larsen and venture capitalist Tim Draper have announced Grow California. The $40 million initiative aims to elect moderate state legislators and counter labor union influence. The proposed California wealth tax served as the primary catalyst for this latest political mobilization from Silicon Valley.

According to The New York Times, the effort began in September with $5 million in contributions from each founder. It is one of the largest financial commitments from the tech and crypto sectors to influence California politics.

Wealth Tax Proposal Sparks Silicon Valley Response

The ballot measure prompting this response is backed by the Service Employees International Union – United Healthcare Workers West. It proposes a one-time 5% tax on net worth exceeding $1 billion, including unrealized gains on assets not yet sold.

“Whoever designed that wealth tax in the unions — wow,” Larsen said. “They woke up the sleeping giant like I have never seen.”

Larsen, whose net worth is estimated at nearly $15 billion from Ripple holdings and crypto assets, plans to contribute $30 million personally to Grow California.

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Targeting Business-Friendly State Legislators

The initiative aims to influence around a dozen state legislative seats this year, focusing on public safety, homelessness, and budget discipline. Shaudi Fulp, a former Sacramento lobbyist, is leading the daily operations of Grow California.

While Democrats currently control over two-thirds of seats in both legislative chambers, the initiative will not engage in the 2026 gubernatorial race or high-cost ballot proposition campaigns.

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Both Larsen and Draper come from the crypto industry but emphasize that the initiative does not specifically represent crypto-sector interests.

Lessons from Previous Crypto Political Efforts

Larsen has acknowledged learning from Fairshake, a crypto super PAC backed by Ripple that spent over $100 million shaping congressional outcomes. Draper, known for Bitcoin-themed campaigns and advocacy for splitting California into multiple states, did not comment.

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

Crypto Politics Intensify Amid Governor Race

The wealth tax debate coincides with former Assembly member 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, aims to make California “the undisputed leader on Bitcoin.”

Meanwhile, Governor Gavin Newsom has criticized President Trump’s crypto-related pardons and launched a state-backed website highlighting individuals his office labels “criminal cronies,” including Binance founder Changpeng Zhao and Ross Ulbricht.

California continues to advance digital asset infrastructure. The Digital Financial Assets Law, effective July 2025, requires all crypto service providers to obtain state licenses. Additionally, AB 1180 creates a pilot program allowing state fee payments using digital assets through 2031.

Global Tax Frameworks Contrast California’s Uncertainty

While California debates wealth taxation, other countries are implementing clearer crypto tax rules:

• Japan (2026): Reduces crypto taxes from up to 55% to a flat 20% for certain registered assets.
• European Union (DAC8, Jan 1, 2026): Requires crypto exchanges to report user information to tax authorities, with cross-country data sharing starting July 1.
• South Korea: Crypto tax regime delayed until January 2027 due to infrastructure gaps.
• Switzerland: Automatic crypto account reporting to foreign tax authorities postponed until 2027, though some legal frameworks take effect in January 2026.

“Tax authorities now have an automated dashboard tracking your digital assets,” noted Bitcoin educator Heidi Chakos.