Fellowship PAC Invests Millions in U.S. Senate Races, Focusing on Texas Republican Candidate

The Fellowship political action committee (PAC), aligned with the cryptocurrency sector and led by Tether's head of government affairs, has reported spending over $3 million on advertising for U.S. Senate races. According to Cointelegraph, the majority of this expenditure is directed towards supporting a Republican candidate in Texas. In a recent filing with the U.S. Federal Election Commission (FEC), Fellowship PAC disclosed that it allocated $1.75 million to back Texas Attorney General Ken Paxton. Paxton, a Republican, is competing against incumbent Senator John Cornyn in a runoff scheduled for May 26, which will determine the party's candidate for the 2026 U.S. Senate race. The PAC's financial support for Paxton is part of a broader strategy to influence key political contests. Beyond Texas, Fellowship PAC has invested $350,000 in advertising for Mike Collins in Georgia's Senate race, $350,000 for Barry Moore in Alabama's Senate race, and $250,000 and $350,000 for Blake Miguez and Julia Letlow, respectively, in Louisiana's House and Senate races. All these expenditures were facilitated through the Nxum Group, a marketing firm co-founded by Bo Hines, former White House crypto adviser and Tether US CEO. Launched in September, Fellowship PAC claims to have amassed over $100 million from undisclosed investors within the crypto industry. Despite reporting $11 million in contributions to the FEC, there are no additional filings or public records revealing crypto-associated backers. Crypto-backed PACs like Fellowship and Fairshake are anticipated to impact the 2026 U.S. midterm elections by funding media and advertising campaigns for candidates they deem "pro-crypto." Fairshake and its affiliates have reportedly spent over $131 million in 2024, potentially swaying voters in crucial battleground states. Ken Paxton's tenure as Texas Attorney General has been marred by corruption allegations, culminating in his impeachment by the state's House of Representatives in 2023, followed by his acquittal by the Texas Senate. The upcoming November U.S. Senate election may see either Paxton or Cornyn facing Democratic candidate James Talarico. In related news, prediction markets platform Kalshi has imposed financial penalties and bans on three candidates from Minnesota, Texas, and Virginia for insider trading. The Texas candidate, Ezekiel Enriquez, was found to have purchased contracts related to his own candidacy for Texas' 21st Congressional District. Kalshi has suspended Enriquez from accessing its platform for five years and imposed a financial penalty of $784.20.