Crypto-Backed Fellowship PAC Withdraws Support for Texas Senate Candidate

The Fellowship political action committee (PAC), a crypto-aligned entity claiming over $100 million in backing, has reportedly withdrawn its advertising support for Texas Attorney General Ken Paxton in his bid for a US Senate seat. Despite reporting a $1.75 million expenditure for supportive advertising to the Federal Election Commission (FEC), reports indicate the ads were never actually placed. The shift reportedly follows inquiries from Republican leaders to US Commerce Secretary Howard Lutnick regarding the PAC's ties to Cantor Fitzgerald. Lutnick, the former CEO of the financial services firm, faced questioning about the PAC's support for Paxton, who is currently engaged in a high-stakes Republican primary battle. Paxton, who failed to win outright in the March primary, is scheduled to face Republican incumbent Senator John Cornyn in a May 26 runoff. The winner of this contest will likely face Democrat James Talarico in the general election for one of Texas' US Senate seats. The outcome of the 2026 midterms remains a critical focal point for the digital asset industry. While Republicans currently hold a slim majority—which facilitated the passage of the stablecoin bill and the GENIUS Act—a change in chamber control could significantly alter the approach to pending crypto laws. Currently, the Senate is considering the CLARITY Act, a comprehensive bill on crypto market structure. More than 120 blockchain-affiliated entities have recently urged the Senate Banking Committee to stop stalling and advance the legislation to a full chamber vote.