California continues to strengthen the connection between government operations and the crypto industry through a new initiative aimed at modernizing public services.
California's Modernization Initiative
California Governor Gavin Newsom announced the launch of a new project aimed at improving public services by collaborating with crypto industry leaders. The initiative includes companies such as Ripple, Coinbase, and MoonPay, focusing on enhancing transparency and efficiency in government processes. The first meeting took place on June 6 at Ripple's headquarters in San Francisco. California, home to 25% of North America's blockchain companies, is exploring the application of blockchain technology to modernizing government services.
Growing Political Influence of the Crypto Industry
The political influence of the crypto industry continues to rise. The committee Fairshake reported raising $141 million to support pro-crypto candidates ahead of the upcoming 2026 elections. In the first half of 2025 alone, Fairshake garnered approximately $52 million, including $25 million from Coinbase. The committee is actively assessing races and supporting candidates they view as progressive on cryptocurrency issues.
GENIUS Act Hits Roadblock
Despite the growing influence of cryptocurrency in politics, the GENIUS Act, aimed at regulating payment stablecoins, failed to move forward in the House of Representatives. Despite President Trump's support, a key procedural vote fell short, with at least 13 Republicans voting against it. However, the House is considering a second vote, and the bill might be reintroduced for discussion in the coming days.
California is showcasing a willingness to integrate the crypto industry into state policy for service improvement, but as contributions from the crypto world grow in politics, legislation faces significant challenges.
