California Launches Blockchain Initiative with Crypto Firms Fairshake PAC Raises $141 Million for Crypto-Friendly Candidates House Fails to Advance Stablecoin Bill Despite Trump's Push

California Governor Gavin Newsom has launched a new initiative aimed at enhancing government efficiency by leveraging the expertise of top cryptocurrency firms. The California Breakthrough Project, announced during US Crypto Week, brings together leaders from Ripple, Coinbase, and MoonPay to modernize public services. The task force held its inaugural meeting on June 6 at Ripple’s San Francisco headquarters, focusing on improving collaboration between regulators and technology firms, as well as addressing inefficiencies and enhancing transparency in public services. Although specific implementations of blockchain technology were not detailed, the inclusion of major crypto firms indicates a serious consideration of blockchain's role in public sector innovation.

California is already a significant hub for blockchain activity, with approximately 25% of North America's blockchain companies based in the state. This initiative aligns with the state's potential for blockchain-based entrepreneurship and innovation to contribute meaningfully to government services and consumer engagement. Newsom's announcement coincided with a pivotal moment in federal crypto policy, where lawmakers are preparing to debate several major digital asset bills, including the Anti-CBDC Surveillance State Act, the Digital Asset Market Clarity (CLARITY) Act, and the GENIUS Act, which aims to establish a regulatory framework for US dollar-backed stablecoins.

The growing connection between crypto and politics is evident with the formation of Fairshake, a political action committee supported by major crypto firms. Fairshake reported holding $141 million in funds aimed at influencing upcoming elections. In the first half of 2025, Fairshake raised approximately $52 million, with Coinbase contributing $25 million. This adds to the $109 million the PAC accumulated since November 2024, giving it more financial firepower than it deployed in the previous US election cycle. Fairshake has already spent over $2 million this year in support of candidates running in special House elections in Virginia and Florida, and over $130 million in 2024 to support candidates favorable to cryptocurrency or to oppose those deemed hostile to the industry.

Fairshake is actively evaluating races for the remainder of 2025 and into the 2026 midterm elections. The PAC did not exist during the 2022 midterms, when much of the crypto industry’s political spending was steered by former FTX CEO Sam Bankman-Fried, who has since been indicted for fraud. While Fairshake did not directly back Donald Trump’s campaign, some well-known figures in the industry, like the Winklevoss twins, Ripple Labs executives, and Kraken co-founder Jesse Powell, individually contributed to the president. These contributions come as PAC spending increasingly shapes the legislative environment around digital assets in Congress.

After the 2024 elections, Republicans secured narrow control of both the House and Senate, with around 270 lawmakers reportedly aligned with pro-crypto views. Fairshake now seems ready to continue its influence heading into 2026, which could potentially deepen the partisan divide on crypto-related legislation. This week, House Republicans are pushing forward with three key bills focused on payment stablecoins, market structure, and central bank digital currencies. Trump instructed all GOP members to support the stablecoin legislation, known as the GENIUS Act, including new House members from Florida who were backed by crypto PAC funds.

Despite the progress made in crypto politics, legislation to regulate payment stablecoins failed to advance in the House of Representatives on Tuesday, despite Trump’s public push for action. The president urged Republicans to approve the GENIUS Act, which is part of a package of crypto-related bills Republican leaders hoped to pass during “crypto week.” However, a key procedural vote fell short, reportedly with at least 13 Republicans voting against it. House Speaker Mike Johnson suggested a second vote could take place later in the day, and the GENIUS Act may still reach the House floor by Thursday. The bill previously passed the Senate with bipartisan support in June.

Trump’s backing of the GENIUS Act attracted criticism due to revelations that his family-linked company, World Liberty Financial, launched its own stablecoin, USD1, with help from Binance. The stablecoin was allegedly involved in facilitating a $2 billion investment by an Abu Dhabi firm into Binance, raising serious ethical and national security concerns due to foreign funding and the president’s financial ties to the industry. Democrats responded by launching an investigation and calling for amendments to the digital asset bills that would ban elected officials from holding or promoting cryptocurrencies to prevent conflicts of interest. With Republicans holding a slim majority, political and financial stakes around crypto legislation will certainly stay high heading into the 2026 elections.