For months, there was discuss that Silicon Valley’s billionaire class was recruiting a candidate to tackle Consultant Ro Khanna. Early Tuesday morning, that candidate made it official.
Ethan Agarwal (pictured above), a 40-year-old tech entrepreneur with no political background, advised TechCrunch on Monday night that he’s operating for California’s seventeenth congressional district. That course of is more likely to arrange what could develop into probably the most lavishly funded major challenges of the 2026 cycle.
The race places a highlight on Khanna, a 49-year-old Democrat broadly seen as a potential 2028 presidential candidate, who has publicly backed a one-time wealth tax in California. His endorsement has infuriated among the state’s richest founders and traders, however Khanna has doubled down, introducing nationwide laws with Senator Bernie Sanders that may impose a 5% annual wealth tax on all Individuals value $1 billion or extra — a proposal their workplaces estimate would elevate $4.4 trillion over a decade.
There’s a sure irony to the state of affairs. Agarwal is a graduate of Wharton and spent three years at McKinsey earlier than founding audio health firm Aaptiv, which he bought in 2021. He most just lately co-founded monetary providers startup Coterie, backed by Andreessen Horowitz.
When Khanna first ran for this identical seat in 2014, he was the tech-backed outsider, with tech names like Marc Andreessen, Sheryl Sandberg and Eric Schmidt supporting him. He challenged well-liked Democratic incumbent Mike Honda, misplaced that try, however got here again in 2016 to win.
Critics on the time known as Khanna an owned man. A decade later, the identical cost will certainly be leveled on the particular person making an attempt to unseat him.
What follows is an edited model of our dialog with Agarwal.
Techcrunch occasion
San Francisco, CA
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October 13-15, 2026
TechCrunch: Final summer season, you introduced plans to run for governor of California. Now you’re becoming a member of a congressional race as a substitute. Why the change?
Agarwal: I made a decision to run for governor again in July when the sector was actually skinny. I don’t have a political background — I come from tech. However then a couple of sturdy candidates bought in, together with Matt Mahan, who I believe is de facto sturdy. I’ve been monitoring Ro since his first congressional race in 2012 — I used to be an enormous supporter. However within the final couple of years, he’s been incrementally pivoting left, and when he tweeted help for the wealth tax on the finish of December, that was the straw that broke the camel’s again. I spotted I might have extra influence operating within the seventeenth district and unseating Ro.
TC: Who’s backing you financially?
Agarwal: We’re pulling papers tomorrow, so we don’t have a checking account but and I can’t elevate cash till then. That stated — [Y Combinator CEO] Garry Tan is behind me, [DoorDash co-founder] Stanley Tang, and a whole lot of others from the tech group whose names will come out within the coming days and weeks.
[Editor’s note: The involvement of Tan, Tang, and others will likely fuel a familiar line of attack: that Agarwal is less an independent candidate than a vehicle for billionaire grievances. It is worth noting that Khanna faced nearly identical criticism when he first ran, and was backed by much of the same tech-donor class that is now organizing against him.]
TC: Are you able to give me somewhat extra shade in your plan? Past closing loopholes, is there an alternative choice to the billionaire tax?
Agarwal: One is taxing loans taken out towards belongings. Very rich individuals will take a mortgage out towards their holdings and pay low curiosity. As a result of it’s technically a mortgage, they don’t pay taxes on it. I believe it’s very cheap to tax these loans.
Second is capital good points — California’s charge is at present 13.4% and I believe it’s cheap to contemplate growing that. Third, a whole lot of homes in California are owned by non-public fairness companies or individuals holding them as investments. I consider it is best to pay considerably greater property taxes on a house held as an funding than as a major residence. That may each elevate income and ease stress on households who really dwell in what they personal.
[The loan-tax idea has been circulating in wealthy circles for some time — notably espoused by VC Chamath Palihapitiya, though it may trace back further to hedge fund giant Bill Ackman. The proposal would treat loans backed by stock holdings as taxable events, eliminating a longstanding strategy by which investors access their portfolio’s value without selling, and thus without ever paying capital gains taxes.]
TC: If you happen to make it to Washington, what’s going to your prime three priorities be?
Agarwal: Primary, banning inventory buying and selling for members of Congress and their households. Quantity two, banning company PAC cash. Quantity three, time period limits.
[Earlier in the conversation, Agarwal spoke at length about the 5,000 children in the 17th district — the wealthiest congressional district in the country — living below the poverty line, and described making it “the first congressional district in history to completely eradicate childhood poverty” as one of his proposals. That point did not make the top three.]
TC: You’ve accused Ro Khanna of being a prolific inventory dealer. Are you able to clarify?
Agarwal: He’s been buying and selling extra shares than any Democratic congressman within the historical past of the nation — in tobacco, oil and gasoline, Massive Pharma, large tech. He publicly launched a congressional inventory buying and selling ban, after which made 4,000 trades final 12 months. Even when the invoice didn’t cross, nothing is stopping him from imposing it on himself. In my case, I’m going to divest my total portfolio the primary day I’m elected, so nobody has to wonder if my votes replicate my private account or my precise beliefs.
[Both claims deserve scrutiny. Khanna has co-sponsored the TRUST in Congress Act and introduced reform resolutions calling for a ban, but hasn’t authored standalone legislation. On the trading figures, Khanna has repeatedly said that he does not personally own or trade any individual stocks, and that the trades in question belong to his wife, whose pre-marital assets are held in an independently managed trust — which, he noted, eliminates any conflict under Office of Government Ethics rules. Whether that distinction satisfies voters is a question the campaign will have to answer.]
TC: Ought to social media platforms be held chargeable for harming teenagers? Part 230 of the Communications Decency Act at present shields them from legal responsibility for what customers publish. The place do you stand on altering that?
Agarwal: I believe Part 230, when it was first drafted [in 1996], made a whole lot of sense. The aim was for platforms to serve principally as internet hosting. However as they’ve advanced, they’re now figuring out what we see due to the algorithms they push. I don’t assume it is smart to make social media firms totally accountable for what individuals publish — the quantity is simply too excessive, and having a 3rd get together make subjective determinations about what’s dangerous will get into actually harmful territory.
That stated, I do assume it’s value revisiting in relation to long-term impacts on youngsters’ psychological well being. If you happen to discuss to Meta, or X, or anybody, they’ll all say they don’t profit from hurting youngsters. We’re all aligned in not wanting that as an end result.
TC: What about regulating AI firms, lots of which are actually in your yard?
Agarwal: I give it some thought from a nationwide safety perspective. I’m assured that having probably the most highly effective fashions is crucial for America, and if we don’t construct them, China will beat us.
Some restrictions make sense — AI shouldn’t provide help to harm your self or another person. However I don’t assume we needs to be limiting firms’ means to construct and strengthen these fashions. It’s actually crucial that we enable them to thrive, for nationwide safety functions, if nothing else.
TC: Do you assume we’d like one thing like an FDA for AI?
Agarwal: I’ve heard that concept. The FDA has largely finished job of protecting Individuals wholesome and secure — I belief the individuals who work there, which I can not say for many authorities organizations. If there’s a approach to construct an unbiased, apolitical authority with rotating phrases, that is smart to me. However I wish to be sure that it’s designed to strengthen America’s nationwide safety, not for political functions.
TC: What about prediction markets — Polymarket, Kalshi? Do they want extra regulation?
Agarwal: To be clear, Kalshi and Polymarket are each regulated by the CFTC. I believe a part of the issue is that sports activities betting apps have created a lot regulatory confusion about what’s allowed during which states that Polymarket and Kalshi have emerged as options. However the regulation they’ve as we speak is definitely fairly good.
TC: How are you planning to run this marketing campaign? Are you doing this full time?
Agarwal: That is 110% of my life. I went to [the private San Jose, Ca., school] Harker, which is within the district. I’ve grown up close by. I do know lots of, perhaps hundreds of people that dwell there. My marketing campaign is basically a floor recreation — I’m going to Chinese language and Hindi academic colleges, to cultural occasions. Holi is arising; Chinese language New 12 months, Purim, is on Tuesday. I’m going to be in any respect of it, assembly individuals, going to small companies.
I believe that is really the core distinction between Ro and me: he’s constructing a nationwide profile, and I’m completely nice with that if that’s what he desires to do. However he’s doing it whereas abandoning the individuals of his personal district. I’m not leaving California. I’m not utilizing this as a stepping stone. He’s nationwide; I’m native. And I believe individuals within the seventeenth know they want somebody targeted on them alone.
TC: What was the impetus to get into politics within the first place?
Agarwal: Possibly that is corny, however — my dad got here right here with completely nothing, making $14,000 a 12 months when he first arrived. He began an organization, took it public, bought it. I used to be born on third base because of that. I’ve began two firms and bought them each.
After which I see individuals round me now not benefiting from the identical system that made all of that potential. The individuals listed here are hardworking, excessive potential — however the setting isn’t supporting them anymore. I’ve been complaining about it for a very long time, and I felt prefer it was time to face up and do one thing.
TC: Is that this the beginning of a political profession?
Agarwal: This isn’t a profession pivot. I see a really particular downside within the seventeenth district that I wish to clear up. I’m going to impose time period limits on myself — I received’t do greater than 5 phrases — after which I’ll most likely return to the non-public sector. Service needs to be a calling, not a job. And actually, I don’t assume it serves your constituents properly when it turns into a profession. Even when a time period limits invoice doesn’t cross, I’m going to impose it on myself. That’s what I really consider.
[That also echoes something from Khanna’s early campaigns — the outsider who arrives with no interest in becoming a career politician except a mandate from the tech industry to shake things up. Whether Agarwal gets further than Khanna’s first attempt did in 2014 may depend on whether Khanna develops any vulnerabilities of his own. Right now, introducing sweeping national legislation with Bernie Sanders and sitting on $15 million in campaign cash, he appears to be doing everything he can to ensure he doesn’t.]
