The new task force includes top crypto firms like Ripple, Coinbase, and MoonPay, and was announced by Governor Gavin Newsom during US Crypto Week. The main goal of the task force is to enhance government transparency and efficiency. Meanwhile, crypto’s political influence is growing as Fairshake PAC gathered $141 million to support pro-crypto candidates ahead of the 2026 elections. Despite these advances, key legislation like the GENIUS Act is facing some headwinds in the House.
California Partners with Crypto Firms
California Governor Gavin Newsom unveiled a new initiative that will help boost government efficiency by bringing together leaders from the cryptocurrency sector to help modernize public services. Dubbed the California Breakthrough Project, the task force includes representatives from Ripple, Coinbase, and MoonPay, among others. It even held its first meeting on June 6 at Ripple’s San Francisco headquarters.
The project’s goal is to improve collaboration between regulators and technology firms while also addressing inefficiencies and enhancing transparency in public services. Although Newsom did not specify how blockchain technology might be directly implemented, the inclusion of major crypto firms suggests that the state is seriously considering the role of blockchain in public sector innovation.
Part of Gavin Newsom’s announcement
California is already a major hub for blockchain activity, with roughly 25% of North America's blockchain companies based in the state. This is according to a recent report by the California Business, Consumer Services and Housing Agency. That same report mentioned the potential for blockchain-based entrepreneurship and innovation to contribute meaningfully to government services and consumer engagement.
Newsom's announcement coincided with US Crypto Week, which is a pivotal moment in federal crypto policy where lawmakers prepare to debate several major digital asset bills. Among them are 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.
Overall, California's decision to formally involve the blockchain industry in state-level innovation initiatives is a major shift in how public institutions are beginning to embrace digital assets and the technologies behind them.
Fairshake Builds Political War Chest
The growing connection between crypto and politics is becoming harder and harder to miss. Fairshake, a US-based political action committee supported by major crypto firms, recently reported holding $141 million in funds that are specifically aimed at influencing upcoming elections. In the first half of 2025 alone, Fairshake raised approximately $52 million, with Coinbase contributing $25 million. This figure adds to the $109 million the PAC accumulated since November of 2024, which gives it more financial firepower than it deployed in the previous US election cycle.
Through affiliated organizations like Defend American Jobs and Protect Progress, Fairshake already spent more than $2 million this year in support of candidates running in special House elections in Virginia and Florida. The PAC also previously spent more than $130 million in 2024 to support candidates seen as favorable to cryptocurrency or to oppose those who were deemed hostile to the industry.
According to spokesperson Josh Vlasto, Fairshake is actively evaluating races for both 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 people 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.
GENIUS Act Hits Roadblock
Despite crypto making a lot of progress in 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.
President Trump post on Truth Social
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 a lot of 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, which raised serious ethical and national security concerns due to foreign funding and the president’s financial ties to the industry.
Press release
Democrats responded by launching an “anti-crypto corruption week,” 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.
