Ripple and Chris Larsen commit $10 million to oppose California billionaire tax

The California billionaire tax has become the center of a growing political and financial dispute, as Ripple Labs and its co-founder, Chris Larsen, have jointly committed $10 million to oppose the proposal. The funding, disclosed just hours ago, is aimed at stopping the measure before it reaches voters in California.

The proposed California billionaire tax, formally known as the 2026 Billionaire Tax Act, seeks to impose a one-time 5% levy on residents whose net worth exceeds $1 billion as of January 1, 2026. If approved, the tax would be collected in 2027.

Ripple and Larsen each contributed $5 million to Golden State Promise, a political action committee formed to campaign against the California billionaire tax. Their involvement has significantly amplified the scale of opposition, bringing the debate into sharper public focus.

The timing of the donations underscores the urgency surrounding the proposal, which must first qualify for the November ballot before Californians can vote on it.

Ripple and Chris Larsen fund opposition campaign

The California billionaire tax has drawn some of its strongest resistance from the tech and crypto sector, with Ripple emerging as one of the most prominent opponents. By channeling funds through Golden State Promise, the company has positioned itself at the forefront of efforts to block the measure.

California hosts several major crypto firms, including Coinbase, Kraken, Solana Labs, OpenSea, and Chainlink Labs, making the California billionaire tax particularly relevant to the digital asset industry.

According to the report, Ripple’s financial backing reflects broader concerns within the sector about how such taxation could impact founders, investors, and high-growth companies operating in the state.

“Ripple and Chris Larsen gave $10 million to Golden State Promise to oppose California’s billionaire tax proposal,” — Coin Edition report.

Their contributions place Ripple among the most visible corporate actors attempting to shape the outcome of the California billionaire tax debate.

What the California billionaire tax would change

If enacted, the California billionaire tax would apply to individuals with net assets of at least $1 billion, marking a significant shift in how extreme wealth is taxed at the state level. Unlike recurring wealth taxes, the proposal is structured as a one-time levy, a feature supporters argue makes it more practical to implement.

Revenue generated from the California billionaire tax would be allocated primarily to public health initiatives, with 90% directed toward healthcare services, while the remaining funds would support education and food assistance programs.

“The measure would impose a one-time 5% tax on California’s billionaire residents worth over $1 billion as of Jan. 1, 2026,” — Coin Edition report.

Backers of the proposal argue that the California billionaire tax could generate billions of dollars to address inequality and improve social services, particularly for underserved communities.

However, critics have raised concerns about the complexity of valuing private assets, including shares in privately held companies, which could complicate implementation.

Tech industry pushback intensifies over California billionaire tax

Opposition to the California billionaire tax extends beyond Ripple, with several figures in the tech and crypto ecosystem voicing concerns. Reports have linked criticism to industry leaders such as Jesse Powell and other wealthy entrepreneurs.

Their objections center on three main issues:

• The potential for increased tax burden on innovation-driven companies
• The difficulty of accurately valuing complex asset portfolios
• The risk that high-net-worth individuals may relocate outside California

“The proposal could push wealthy residents and founders to move out of California,” — Coin Edition report.

Golden State Promise is expected to deploy the funds raised to drive advertising campaigns, voter outreach, and public messaging as the debate over the California billionaire tax continues to gain momentum.

As the proposal moves closer to a possible ballot appearance, the California billionaire tax remains a focal point in the broader discussion about wealth, taxation, and economic policy in one of the world’s largest technology hubs.