Eric Swalwell
Democratic representative Eric Swalwell denies allegations as he ends his gubernatorial bid and vows to 'fight the serious, false allegations.' Facebook/Eric Swalwell

The controversy that forced Eric Swalwell's withdrawal from the California governor race proved pivotal in retrospect, as his exit has paved the way for two key candidates.

The Democratic Representative was an early frontrunner until allegations of sexual assault and misconduct derailed his campaign in April. He relinquished his gubernatorial bid and resigned from Congress.

Eric Swalwell Sexual Assault Scandal and Aftermath

While Swalwell vociferously denied the assault allegations, he admitted to 'mistakes in judgment' amid immense political pressure from party leaders.

Top Democrats including former Speaker Nancy Pelosi and House Leader Hakeem Jeffries retracted their endorsements, leading to his suspension of the gubernatorial campaign.

The rapid collapse of Swalwell's political standing prompted investigations by the Manhattan District Attorney's Office and the US Department of Justice into his conduct. His sudden departure splintered his voter base and set off a frenetic scramble among rivals like former Congresswoman Katie Porter.

Tom Steyer and Xavier Becerra Take Over

Billionaire hedge fund founder Tom Steyer was the first to benefit from the scandal's fallout, Fox News reported. He ranked third in the ongoing count on Wednesday, with Republican Steve Hilton and Democrat Xavier Becerra fighting for the lead.

Steyer is betting big on the race, having spent over £148 million ($200 million) of his money on his campaign.

Steyer remained optimistic about his prospects on Wednesday evening, quoting President Franklin D. Roosevelt while speaking to supporters.

'California deserves better,' he asserted. 'Working people deserve better.' Addressing his spot in the race, he later asserted, 'We just have to be patient.'

Becerra also owed his lead in part to Swalwell's exit, according to the outlet. He's also primed for the position, having served California for 35 years from the State Assembly to the US Congress, also as a former California Attorney General and Secretary of Health and Human Services

The last time California had a Latino governor was in 1875, when Romualdo Pacheco briefly served. Becerra could break that 150-year dry spell if he wins November's election. His campaign's success is 'more than a Hollywood ending, more than a milestone,' he told supporters. 'That's the everyday miracle of living in a state that makes the improbable seem inevitable. And I couldn't have done it without you.'

Primary Upended with Republicans Eyeing Top Spots

Swalwell's scandal has all but destabilised the primary field, with nine candidates now vying for the top spot. As the state conducts its nonpartisan 'jungle' primary, Trump-backed Hilton also poses a threat to upset Democrat-dominated California.

With no clear frontrunner among Democratic hopefuls, the scandal heightened fears among strategists that a crowded field might split their vote. Democratic strategists worried this split could also allow Republican candidates like Hilton and Chad Bianco to secure the top two spots and completely shut the Democrats out.

Swalwell's sudden exit from the House of Representatives also triggered a separate scramble for his former District 14 seat with a crowded field of candidates. State Senator Aisha Wahab took an early lead in the June primary to succeed him in Congress.