Last updated on May 12th, 2026 at 03:00 pm
Senior Republican figures reportedly stepped in this week after a crypto-aligned super PAC linked to Howard Lutnick signalled plans to inject $1.75 million into a heated Texas political contest.
According to reports, the PAC seeded by financial firm Cantor Fitzgerald had outlined intentions in a federal filing to support Texas Attorney General Ken Paxton in his runoff battle against Senator John Cornyn. The move quickly drew concern within GOP circles, as the race remains one that President Donald Trump has notably avoided endorsing.
Republican leaders push back on PAC involvement
The super PAC, known as Fellowship PAC, appeared to insert itself into a sensitive intra-party contest at a time when Republican leadership is trying to maintain cohesion ahead of the 2026 midterms.
Scoop: GOP called Howard Lutnick to reverse crypto PAC’s Texas move https://t.co/kOThp4dyLa
— Axios (@axios) April 24, 2026
While Lutnick no longer controls Cantor Fitzgerald, having divested his interests before joining the administration, party officials reportedly still reached out to him, viewing the planned ad spend as politically unnecessary. His past leadership at the firm and its financial backing of the PAC placed him at the centre of the conversation.
Despite the initial filing, the proposed ad campaign never came to life. By midweek, Republican insiders were reassured that no ads had aired and none were in production. Media tracking data also showed no evidence of political placements tied to the PAC or its affiliated firms this election cycle.
Crypto money faces scrutiny ahead of 2026 midterms
The aborted ad buy highlights the growing influence and scrutiny of crypto-linked funding in U.S. politics. Fellowship PAC had recently emerged as a major player after securing a $10 million contribution from Cantor Fitzgerald, alongside additional backing from crypto infrastructure firms.
Led by Jesse Spiro, the group reportedly aims to raise as much as $100 million for the 2026 election cycle. Its rapid fundraising and strategic ambitions have already made it one of the most closely watched entities in crypto political spending.
The episode comes as over 100 crypto firms and advocacy groups push Congress to accelerate progress on market structure legislation, underscoring how digital asset interests are increasingly shaping both policy and campaign dynamics in Washington.
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