The Fellowship political action committee (PAC), which launched claiming to have more than $100 million from crypto-aligned backers, has reportedly backed out of an advertising deal to support Texas Attorney General Ken Paxton in a crucial US Senate race.
According to a Thursday report from Axios, Republican leaders contacted US Commerce Secretary Howard Lutnick on his connections to Fellowship, which has been partially funded by Cantor Fitzgerald.
Lutnick, as the former president and CEO and whose sons are now in charge of the financial services company, reportedly faced questioning from Republicans about Fellowship’s support of Paxton, whom on Tuesday the PAC reported spending $1.75 million in supportive advertising.
Fellowship PAC expenditure report on Ken Paxton. Source: FEC
The advertising expenditure, which Fellowship disclosed to the Federal Election Commission (FEC) through the marketing company Nxum Group, was reportedly never placed. As of Friday, the FEC filing showing the $1.75 million expenditure was still public. Cointelegraph reached out to Fellowship for comment but did not receive an immediate response.
A crypto-backed PAC like Fellowship backing out of support for a candidate in a US Senate race, possibly in response to pressure from Republican leaders, is somewhat unusual. Political action committees tied to digital assets support candidates on both sides of the aisle who they consider pro-crypto.
Along with Fellowship, PACs like Fairshake and others are expected to spend a combined hundreds of millions of dollars in the US midterm elections after pouring money into ads for 2024 candidates to influence voters.
Paxton, who failed to win outright in a March primary against Senator John Cornyn, will face the Republican incumbent in a May 26 runoff before the November general election. Whichever Republican wins a majority of the vote will likely face off against Democrat James Talarico in a race for one of Texas’ US Senate seats.
Crypto entities calling for action on market structure bill in Senate
Republicans have held a slim majority in the US Senate since January 2025, leading to the passage of the stablecoin bill, the GENIUS Act, and the consideration of other pieces of crypto legislation. However, if Democrats gain majority control of the chamber in the 2026 midterm elections, it could change how the Senate approaches crypto laws.
Since July 2025, the Senate has been considering a bill on crypto market structure, expected to be one of the most comprehensive pieces of legislation affecting the industry. Delays, in part due to government shutdowns, ethics concerns and questions about stablecoin yield, have persisted for months, with no vote on the bill scheduled in the full chamber.
On Thursday, more than 120 entities affiliated with the cryptocurrency and blockchain industry urged Senate Banking Committee leaders to stop stalling on advancing the market structure bill, the CLARITY Act. The committee will need to hold a markup on the bill before the Senate can potentially schedule a vote.