Crypto PAC Changes Stance Amid GOP Worries About Texas Race
Senior Republican officials allegedly reached out to Commerce Secretary Howard Lutnick after a crypto-affiliated super PAC indicated intentions to invest $1.75 million in Texas.
Summary
- Republican leaders reportedly contacted Howard Lutnick after Fellowship PAC expressed plans for a Texas ad expenditure.
- The crypto-affiliated PAC proposed a $1.75 million spend in support of Ken Paxton but did not run any ads.
- Fellowship PAC is notable due to a $10 million contribution from Cantor Fitzgerald.
The proposed funding would have bolstered Texas Attorney General Ken Paxton in a Republican Senate runoff against Sen. John Cornyn, as noted by Axios.
This revelation garnered interest since President Donald Trump had not publicly endorsed a candidate in the race. Republican leaders considered Fellowship PAC’s intended move as potentially disruptive in this sensitive primary contest.
Fellowship PAC was initiated by Cantor Fitzgerald, the firm Lutnick managed prior to joining the Trump administration. Lutnick divested his interests last year, with his sons currently overseeing the firm, according to Axios.
Proposed ad expenditure did not proceed
According to Axios, Fellowship PAC did not execute the advertised purchasing as noted in the Federal Election Commission filing. Republican leaders were subsequently informed that the group had neither aired nor planned to air pro-Paxton advertisements.
Additionally, media-tracking data indicated that neither Fellowship PAC nor its advertising firm had conducted political ad campaigns this election cycle. It remains uncertain whether Lutnick took action following the outreach from Republican officials.
The National Republican Senatorial Committee expressed criticism of the reported filing as it emerged, focusing on concerns regarding the PAC’s interference in a race that GOP leaders were closely monitoring.
Crypto PAC draws nationwide attention
The crypto aspect has made Fellowship PAC a prominent focus among political entities ahead of the 2026 midterms. Cantor Fitzgerald’s $10 million donation to the group is documented in federal filings reported by Bloomberg and Yahoo Finance.
Jesse Spiro, the head of government affairs at Tether, chairs Fellowship PAC. The group also received a $1 million contribution from Anchor Labs, a crypto infrastructure company associated with Cantor, as previously reported.
Fellowship PAC was reportedly targeting a fundraising goal of $100 million for the 2026 election cycle, and by mid-April, it had accumulated $11 million from disclosed supporters.
Crypto spending remains under scrutiny
This incident occurs amid the increasing political spending by crypto entities in Washington. Axios reported that crypto organizations expended approximately $120 million to $130 million during the 2024 elections, which includes around $40 million from Fairshake.
The 2026 cycle is under heightened scrutiny as the industry advocates for more explicit digital asset regulations. This week, over 100 crypto companies and lobbying organizations urged Congress to advance legislation concerning market structure.
The reported Texas filing by Fellowship PAC illustrates how crypto-linked political spending can capture attention beyond issues related to digital assets. It also highlights how party leaders may react when external groups enter competitive races.