Senior Republican officials reportedly reached out to Howard Lutnick after a crypto-linked super PAC signaled plans to spend $1.75 million in Texas, raising concerns within the party.
Summary
GOP leaders reportedly contacted Howard Lutnick after Fellowship PAC flagged a Texas ad buy
The crypto-linked group listed a $1.75 million spend supporting Ken Paxton but ultimately did not run ads
Fellowship PAC has drawn scrutiny after receiving a $10 million contribution from Cantor Fitzgerald
According to reports, the planned spending was intended to back Ken Paxton in a Republican Senate runoff against John Cornyn. The move attracted attention because Donald Trump had not yet endorsed a candidate in the race, making it a particularly sensitive contest for party leadership.
Planned ad buy never materialized
Despite the Federal Election Commission filing outlining the ad spend, Fellowship PAC did not move forward with the campaign. Media tracking data showed no evidence of political ads from the group or its associated firms this election cycle.
It remains unclear whether Lutnick took action following outreach from Republican officials. However, party leaders were later informed that no pro-Paxton ads had aired or were in preparation.
Crypto-linked PAC under spotlight
Fellowship PAC has emerged as a notable player ahead of the 2026 midterms, largely due to its financial backing. The group was seeded with a $10 million donation from Cantor Fitzgerald, the firm Lutnick previously led before entering government. He has since divested, with leadership transitioning to his sons.
The PAC is chaired by Jesse Spiro, head of government affairs at Tether, and has also received funding from crypto infrastructure firms. Early reports suggest it aims to raise up to $100 million for the 2026 election cycle, with around $11 million secured so far.
Growing scrutiny on crypto political spending
The situation highlights increasing attention on crypto-related political funding. Industry groups spent an estimated $120 million to $130 million during the 2024 elections, with major contributions coming from PACs like Fairshake.
As the 2026 cycle approaches, crypto firms are simultaneously pushing for clearer regulatory frameworks, adding another layer of political relevance. The Texas episode underscores how such spending can quickly draw scrutiny—especially when it intersects with high-stakes party contests.
