Republican Leaders Alarmed by Crypto PAC’s Texas Push, Contact Lutnick

Crypto PAC influence surfaces in US politics, but retreat shows limits amid GOP pressure and internal divisions.

Republican leaders raised concerns after a crypto-linked political action committee signaled support for a controversial Texas candidate. The development quickly drew attention inside GOP circles already divided over the race. Calls were made to Commerce Secretary Howard Lutnick, whose former firm is tied to the group. Within a day, tensions eased as the planned ad push failed to materialize.

GOP Alarmed After Crypto PAC Targets Texas Runoff With $1.75M Plan

Senior Republican officials contacted Howard Lutnick on Tuesday following an FEC filing tied to a new crypto super PAC. The group, Fellowship PAC, indicated plans to spend $1.75 million backing Ken Paxton in Texas. The filing sparked immediate concern among party leaders wary of internal divisions.

Fellowship PAC is linked to Cantor Fitzgerald, where Lutnick previously served before stepping down last year. Although his sons now run the firm, Republican officials still reached out, urging intervention. Sources familiar with the calls described the move as an avoidable political misstep.

Tensions grew due to the high-stakes nature of the race. Donald Trump has yet to firmly back either Ken Paxton or John Cornyn, leaving party factions divided. Backing Paxton, who finished second in the GOP primary, raised concerns about further splits ahead of a crucial runoff.

Shortly after, public criticism followed as Chris LaCivita, a senior strategist aligned with Cornyn, called the move “not a smart” decision. Meanwhile, the National Republican Senatorial Committee issued a sharper warning.

Spokesperson Joanna Rodriguez argued that backing Paxton could jeopardize Republican chances of holding the Senate seat.

Republicans Reassured as Crypto PAC Halts Planned Election Ads

Despite the initial backlash, the situation changed quickly. Sources indicated the PAC did not follow through on the ad buy outlined in its FEC filing. By Wednesday, party officials were reassured that no pro-Paxton ads had aired and none were planned.

Media tracking data supported that view. No political ads have been aired by Fellowship PAC or its partner, Nxum, during this cycle. That quiet stretch eased worries about any larger role in the race.

Jesse Spiro, who leads the PAC and handles government affairs at Tether, did not reply to inquiries. It is still unknown whether Howard Lutnick responded after being contacted.

For now, concerns inside Republican ranks have cooled. Even so, the episode shows how digital-asset money is starting to appear in closely contested elections.