For months, speculation has surrounded Silicon Valley’s wealthy elite about finding a challenger for Representative Ro Khanna. Early on Tuesday, that challenger made his intentions clear.
Ethan Agarwal (shown above), a 40-year-old technology entrepreneur without prior political experience, informed TechCrunch on Monday night of his candidacy for California’s 17th congressional district. This development could lead to one of the most lavishly financed primary battles of the 2026 election cycle.
The competition highlights Khanna, a 49-year-old Democrat who is often viewed as a potential contender for the 2028 presidential election and has publicly endorsed a temporary wealth tax in California. His support has angered some of the state’s wealthiest founders and investors, yet Khanna has remained steadfast, introducing national legislation on Monday with Senator Bernie Sanders to implement a 5% annual wealth tax on all Americans with a net worth of $1 billion or more — a measure their offices project could generate $4.4 trillion over a ten-year period.
There’s a certain irony in this scenario. Agarwal is a Wharton graduate and spent three years at McKinsey before launching audio fitness company Aaptiv, which he sold in 2021. Recently, he co-founded financial services firm Coterie, which is supported by Andreessen Horowitz.
When Khanna first campaigned for this same seat in 2014, he was the tech-supported outsider, buoyed by tech figures such as Marc Andreessen, Sheryl Sandberg, and Eric Schmidt. He faced the popular Democratic incumbent Mike Honda, lost that bid, but returned in 2016 to secure victory.
Critics at that time labeled Khanna a puppet. A decade later, the same accusation will undoubtedly be aimed at Agarwal, who seeks to unseat him.
What follows is a revised excerpt from our discussion with Agarwal.
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TechCrunch: Last summer, you revealed your intent to run for governor of California. Now you are opting for a congressional campaign instead. What prompted this change?
Agarwal: I made the decision to run for governor back in July when the candidate pool was quite sparse. Without a political background — coming from a tech background — I saw a few strong entrants like Matt Mahan, who I consider substantial. I’ve followed Ro since his first congressional race in 2012 — I was a significant supporter. However, in recent years, he has gradually leaned left, and when he expressed support for the wealth tax in late December, it was the last straw for me. I recognized I could have a greater impact by running in the 17th district and challenging Ro.
TC: Who is financing your campaign?
Agarwal: We’re filing the necessary paperwork tomorrow, so we don’t have a bank account established yet, and fundraising will commence afterward. That being said — [Y Combinator CEO] Garry Tan is supporting me, along with [DoorDash co-founder] Stanley Tang, and numerous others from the tech sector whose names will emerge in the upcoming days and weeks.
[Editor’s note: The involvement of Tan, Tang, and others will likely ignite a familiar line of attack: suggesting that Agarwal is more a puppet candidate than an independent voice for billionaire concerns. It’s important to note that Khanna faced very similar criticisms when he initially campaigned.]
TC: Can you provide more details about your plans? Besides closing loopholes, is there an alternative to the billionaire tax?
Agarwal: One approach is taxing loans taken against assets. Extremely wealthy individuals typically secure loans against their holdings and pay minimal interest. Since it’s classified as a loan, it escapes taxation. I believe taxing those loans is entirely reasonable.
Another area is capital gains — California currently has a rate of 13.4%, and I think considering an increase is fair. Thirdly, many homes in California are owned by private equity firms or individuals who hold them as investments. I contend that significantly higher property taxes should apply to a home used as an investment compared to one serving as a primary residence. This would both increase revenue and alleviate pressure on families residing in their own homes.
[The loan-tax concept has been circulating in affluent circles for a while — notably promoted by VC Chamath Palihapitiya, though it may have originated with hedge fund titan Bill Ackman. The proposal seeks to treat loans secured by stock assets as taxable occurrences, thus closing a long-standing loophole that allows investors to access their portfolio’s worth without selling, and consequently without incurring capital gains taxes.]
TC: If you make it to Washington, what will your primary three focuses be?
Agarwal: First, prohibiting stock trading for members of Congress and their families. Second, banning corporate PAC contributions. Third, establishing term limits.
[Earlier in our conversation, Agarwal elaborated on the 5,000 children living below the poverty line in the 17th district — which is the wealthiest congressional district nationally — and described his goal of making it “the first congressional district in history to eliminate childhood poverty” as one of his initiatives. That point did not rank among his top three priorities.]
TC: You have accused Ro Khanna of being an active stock trader. Can you clarify?
Agarwal: He has traded more stocks than any Democratic congressman in U.S. history — in sectors like tobacco, oil and gas, Big Pharma, and big tech. He publicly proposed a ban on congressional stock trading, then proceeded to execute 4,000 trades last year. Even if the bill didn’t pass, he could still self-impose it. As for me, I plan to divest my entire portfolio on my first day in office, ensuring no one questions whether my votes reflect my personal financial interests or my true beliefs.
[Both statements warrant examination. Khanna has co-sponsored the TRUST in Congress Act and proposed reforms advocating a ban, but has yet to author standalone legislation. Regarding the trading figures, Khanna has consistently stated he doesn’t personally own or trade individual stocks, and that the trades in question belong to his wife, whose assets are held in an independently managed trust — thereby avoiding any conflict under the Office of Government Ethics regulations. Whether this clarification will satisfy voters remains to be seen.]
TC: Should social media platforms be held accountable for negatively impacting teens? Currently, Section 230 of the Communications Decency Act absolves them of responsibility for user-generated content. What are your views on modifying this?
Agarwal: I believe Section 230, as it was initially drafted [in 1996], served a valuable purpose. The objective was for platforms to function mainly as hosts. However, as their roles have shifted, they now influence what we see through the algorithms they implement. I don’t think it’s appropriate to hold social media companies fully liable for user content — the volume is too staggering, and having a third party make subjective judgments about harmful content leads to potentially perilous outcomes.
That being said, I do think it’s essential to reassess the impact on teenagers’ mental health in the long term. If you consult Meta, or X, or any of them, they will all affirm they don’t gain from harming teenagers. We share the common goal of wanting a better outcome.
TC: What about supervising AI firms, many of which operate right in your vicinity?
Agarwal: I view this through the lens of national security. It’s crucial for America to possess the most advanced models, and if we fail to develop them, China will outpace us.
Some regulations are sensible — AI shouldn’t endanger individuals or others. Nevertheless, I don’t believe we should constrain companies’ ability to innovate and enhance these models. Allowing them to succeed is vital, primarily for national security reasons.
TC: Do you think we need something akin to an FDA for AI?
Agarwal: I’ve encountered that notion. The FDA has largely excelled in safeguarding the health and well-being of Americans — I place trust in the individuals working there, which I cannot affirm for most government entities. If we can establish an independent, nonpartisan authority with rotating terms, that seems reasonable to me. However, it should be designed to bolster America’s national security, not politicized motives.
TC: What about prediction markets like Polymarket and Kalshi? Do they require more oversight?
Agarwal: To clarify, Kalshi and Polymarket are regulated by the CFTC already. Part of the confusion stems from the surge in sports betting applications, creating ambiguity about what is permissible in various states, leading to the emergence of alternatives like Polymarket and Kalshi. However, their existing regulatory framework is generally effective.
TC: How do you intend to conduct your campaign? Are you dedicating yourself to this full time?
Agarwal: This is my utmost priority. I attended [Harker, a private school in San Jose, CA] located within the district. I’ve spent my life nearby. I know countless residents. My campaign will be grassroots-driven — I’m heading to Chinese and Hindi educational institutions, cultural festivities. Holi is approaching; Chinese New Year, Purim is on Tuesday. I’m attending all these events, meeting with people, and visiting small businesses.
I believe this underscores the core difference between Ro and myself: he is cultivating a national presence, which is fine if that’s his ambition. However, he’s doing this while neglecting the needs of his constituents. I’m committed to California. I’m not viewing this as a stepping stone. He’s focused on the national stage; I’m concentrated on local matters. I think the constituents in the 17th district recognize they need a representative devoted solely to them.
TC: What motivated you to enter politics initially?
Agarwal: This might sound cliché, but — my father arrived here with nothing, earning $14,000 a year upon arrival. He established a company, took it public, and sold it. I am benefiting from the fruits of his labor. I’ve created two companies and sold both.
Now, I observe individuals in my vicinity no longer reaping the rewards of the same system that enabled my success. The residents here are industrious, have great potential — but the current environment no longer supports them. I’ve spent enough time expressing my concerns, and I felt it was time to take action.
TC: Is this the beginning of a political journey for you?
Agarwal: This isn’t a shift in career direction. I recognize a distinct problem in the 17th district that I am eager to address. I will enforce term limits on myself — I won’t serve more than five terms — and likely return to the private sector afterward. Public service should be a vocation, not merely a job. I genuinely believe constituents deserve better representation when it doesn’t morph into a profession. Even if a term limits measure doesn’t succeed, I intend to enforce it upon myself. That reflects my true convictions.