| | | | |  | | By Dustin Gardiner and Lara Korte | | Presented by |  | | | |  A visual representation of the digital Cryptocurrency, Bitcoin on December 07, 2017, in London, England. | Dan Kitwood/Getty Images | THE BUZZ: DROPPING COIN — The cryptocurrency industry has tried to cast itself as a bipartisan player at the national level. But, in California swing races, the industry has gone full red with its spending this cycle. In battleground contests across the Golden State, pro-crypto groups have overwhelmingly backed vulnerable House Republicans, including Reps. Michelle Steel, David Valadao and Mike Garcia. Fairshake, a crypto-focused super PAC , has spent more than $5 million on TV ads to bolster those three GOP incumbents in the final weeks of the election. The industry’s leaning has miffed Democrats who argue crypto leaders, in particular Fairshake, have picked sides in a handful of pivotal swing House races and contradicted the group’s claim that it intends to be a more neutral actor. Crypto has played most in the Orange County contest between Steel and Democratic challenger Derek Tran . Fairshake has spent at least $2.84 million to boost the GOP incumbent with TV ads. That includes more than $1 million in spots the PAC had initially planned to use to help Garcia fend off a challenge from Democrat George Whitesides. The PAC shifted to the Orange County contest amid polling that shows Steel in trouble. Like many powerful Big Tech players, crypto’s allegiances appear to be less about partisan ideology and more about regulatory expedience, as the industry backs candidates who are skeptical of aggressive government intervention. Paul Iskajyan, a campaign spokesperson for Tran, argued Fairshake’s advertising buys show that its claims of bipartisanship have been a facade when the industry is trying to put its thumb on the scale in districts where the House majority is at stake. “It appears this is more about keeping the House of Representatives in Republican control than promoting the importance of crypto in driving technological innovation,” Iskajyan told Playbook. But Fairshake and other industry groups have pushed back against Democrats’ criticism in California. Josh Vlasto , a spokesperson for the PAC and its affiliates, said the group is focused on a national bipartisan strategy, not the particulars of whether its buys in California lean more red versus blue. “We are proud of the progress we have seen toward the creation of a sustainable bi-partisan coalition,” he said in a statement. Nationwide, Fairshake has spent more than $117.8 million to influence congressional elections this cycle, according to an analysis by POLITICO. That includes ad buys the PAC has made to support Democrats in swing House races in New York and North Carolina, contests that could also shape the balance of power on Capitol Hill. Crypto groups have also spent to support Democrats in other California races, including Reps. Ro Khanna and Jimmy Gomez. The key distinction, however, is that both are industry allies and running in safe-blue districts in the Bay Area and Los Angeles. The cryptocurrency field has sought to reassert its status as a political influence machine this cycle — a comeback effort after the downfall of Sam Bankman-Fried , one of the richest crypto pioneers and a prolific donor who was convicted of fraud last year. But rumblings about crypto’s GOP-leanings could provide another setback, particularly if Democrats succeed in their crusade to flip the House this November.
| | | | A message from L'Oréal: Approximately 65% of Americans have textured hair – coiled, curly, or wavy. California’s new law, Textured Hair Education Bill (AB 2166), addresses the unique needs of these hair types by providing education for beauty professionals. Thanks to Gov. Gavin Newsom & Dr. Akilah Weber, this ensures all Californians are seen and celebrated in the salon chair. | | |
GOOD MORNING. Happy Tuesday. Thanks for waking up with Playbook.
You can text us at 916-562-0685 — save it as “CA Playbook” in your contacts. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on X — @DustinGardiner and @Lara_Korte. WHERE’S GAVIN? Nothing official announced. |  | STATE CAPITOL | | |  California Gov. Gavin Newsom spoke at a news conference in the California State Capitol on Oct. 14, 2024, after signing a bill that aims to prevent gas price spikes by giving the state authority to require oil refiners to store more product. | Wes Venteicher/POLITICO | SIGNED, SEALED, DELIVERED — After a tense few months, Gov. Gavin Newsom on Monday finally signed a bill aimed at reining in soaring gas prices that have come to symbolize California’s multi-faceted struggle with affordability. POLITICO’s Wes Venteicher captured th e final moments of the special session in the Capitol yesterday, where Newsom and Democratic lawmakers celebrated the signing of ABX 2 1, which gives his administration new authority to regulate the dwindling number of oil refineries, will bring oil majors to heel by requiring them to prevent price spikes caused by maintenance and low supplies. “They have been raking in unprecedented profits because they can,” he said at the signing, hours after lawmakers sent it to his desk. ”They’ve been screwing you for years and years and years.” The oil industry has fought the bill in Sacramento, arguing it could backfire and drive up costs. The head of the industry’s main trade group accused lawmakers of being more concerned with painting Big Oil as a villain than tamping down gas prices. “For those ready to stop playing politics, we welcome the opportunity to address the real issues driving fuel prices higher for Californians and their families,” Western States Petroleum Association CEO Cathy Reheis-Boyd said in a statement. Read more from Wes on what the signing means for Newsom’s ongoing crusade against Big Oil. | | | | A message from L'Oréal:   | | | | THE HORSESHOE — Nathan Barankin, who started his career as a Sacramento legislative fellow and went on to become the top aide to Kamala Harris in California and Washington, is joining Newsom’s senior staff on Tuesday, he and other advisers confirmed to POLITICO. More from our Christopher Cadelago | | CAMPAIGN YEAR | | | | 
Republican presidential nominee Donald Trump gestures as he departs a rally at the Calhoun Ranch on Oct. 12, 2024, in Coachella, California. | Alex Brandon/AP | TRUMPFEST — Former President Donald Trump used his Coachella rally over the weekend to bash California as a state in decline while furthering his increasingly xenophobic and racist rhetoric against immigrants. POLITICO’s Blanca Begert traveled to the desert on Saturday where Trump stood in 100 degree heat blaming Vice President Kamala Harris for turning the state into what he described as a hellscape. “She’s imported an army of illegal alien gang members and migrant criminals from the dungeons of the Third World,” Trump said, donning a red Make America Great Again hat as the sun beat down on the crowd. California is often a punching bag for conservatives, and appearing in the deep blue state on a hot day seemed like an odd campaign choice for Trump with just a few weeks left before the election to raise money and court voters in swing states. But the rally site was also on the edge of the competitive House district currently held by GOP Rep. Ken Calvert. Of the current six swing seats in the state, Calvert’s is the only one Trump won in 2020. Calvert, who was mum on the former president’s impending rally last week, spoke ahead of Trump at the event and the former president briefly acknowledged the congressmember during his nearly 80-minute speech. “Good job Ken, very good job. Do we have enough people for you? Broke the record. Everybody needs to get out and vote for Ken,” Trump said, calling Calvert’s Democratic opponent Will Rollins a “radical California liberal.”
| | | | A message from L'Oréal: Approximately 65% of Americans have textured hair – coiled, curly, or wavy. Yet, for far too long, cosmetology training has overlooked the unique needs of these hair types. California’s new law, Textured Hair Education Bill (AB 2166), addresses this by providing education for beauty professionals. Thanks to Gov. Gavin Newsom and Dr. Akilah Weber, this ensures that all Californians are seen and celebrated in the salon chair. The Professional Products Division of L'Oréal is a proud founding member of the Texture Education Collective (TEC), an alliance of professional hair industry leaders working together to influence cosmetology state board licensing requirements and curriculums to be inclusive of all hair textures and all hair types. | | | FIGHTING WORDS — Jennifer Tran has come out swinging (literally) in a new ad against fellow Democrat Lateefah Simon. Tran, who is running for retiring Rep. Barbara Lee’s seat in the East Bay, debuted a fiery spot over the weekend seeking to portray her opponent Simon, a member of the BART board of directors, as a plant of the “corporate mega-party,” calling on her to come down from her “ivory towers in Emeryville” and “meet me in the streets” for a debate. Tran, in the ad, is shown in a boxing gym, changing into athletic clothes and wrapping her hands while she speaks to the camera. The race in the deep blue district has flown under the radar as money and attention go toward swing seats in Orange County and the Central Valley. Recent polling showed Simon with a 13-point lead over Tran. Elizabeth Power, a spokesperson for Simon’s campaign, said in a statement that Tran’s claims sound like a “MAGA Republican.” “The whole video is just a bizarre, last-ditch cry for attention,” she said.
| | CLIMATE AND ENERGY | | LAWSUIT WATCH — In case you don’t have Elon Musk’s X notifications on (like we do), the tech billionaire over the weekend lashed out against California officials for rejecting SpaceX’s ability to launch rockets off the central coast, in part, because of his tweets about the presidential election and spreading falsehoods about Hurricane Helene. Musk called the move “incredibly inappropriate” and vowed to sue for First Amendment violations. We’ll be watching the docket to see if he follows through.
| | | Top Talkers | | | — California’s main firefighters’ union on Monday endorsed Harris, breaking with the national union that declined to choose sides in the presidential race. (POLITICO) — Wealthy tech executives, many of their employees and the venture capitalists funding their companies have poured millions of dollars into the race for San Francisco mayor. (Los Angeles Times)
| | AROUND THE STATE | | — The Los Angeles Unified School District is overhauling a $120-million academic program for struggling Black students after a legal complaint was filed by a Virginia-based conservative group. (Los Angeles Times) — With Election Day drawing closer, Republican and Democratic leaders descend on California, where five swing seats could determine control of Congress (Los Angeles Times) — Police over the weekend arrested a man near Trump’s rally in Coachella. The Riverside County sheriff said law enforcement stopped an assassination attempt. (Press Enterprise) — Mayor London Breed is touting progressive support as ranked choice wrangling ramps up. (San Francisco Chronicle)
| | PLAYBOOKERS | | PEOPLE MOVES — Tim McRae has joined the California Hydrogen Business Council as vice president of external affairs. He was previously SVP of sustainable growth at the Silicon Valley Leadership Group. BIRTHDAYS — Lionel Levine … BELATED B-DAY WISHES — (was Monday): Microsoft’s David Leichtman … CalMatters’ Alexei Koseff… California Department of Education's Terasita Cortopassi … (was Sunday): Second gentleman Doug Emhoff (6-0) … POLITICO’s Emily Cadei … Billy Bush … Maddy Buss of Click Communications … Glenda Corcoran, district director for Rep. Doris Matsui … (was Saturday): former Rep. Ed Royce (R-Calif.) … Christopher Kirchhoff … WANT A SHOUT-OUT FEATURED? — Send us a birthday, career move or another special occasion to include in POLITICO’s California Playbook. You can now submit a shout-out using this Google form. CALIFORNIA POLICY IS ALWAYS CHANGING: Know your next move. From Sacramento to Silicon Valley, POLITICO California Pro provides policy professionals with the in-depth reporting and tools they need to get ahead of policy trends and political developments shaping the Golden State. To learn more about the exclusive insight and analysis this subscriber-only service offers, click here. Want to make an impact? POLITICO California has a variety of solutions available for partners looking to reach and activate the most influential people in the Golden State. Have a petition you want signed? A cause you’re promoting? Seeking to increase brand awareness amongst this key audience? Share your message with our influential readers to foster engagement and drive action. Contact Rebecca Haase to find out how: rhaase@politico.com. | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | | |
