Crypto-backed PAC reported $1.75M Paxton ad, did not run

The crypto-backed Fellowship political action committee reported a $1.75 million advertising expenditure to the Federal Election Commission for ads supporting Texas Attorney General Ken Paxton, but the ads were not placed.

Fellowship disclosed the payment through marketing firm Nxum Group on Tuesday and the FEC filing remained publicly visible as of Friday. Fellowship did not immediately respond to requests for comment.

Republican leaders contacted Commerce Secretary Howard Lutnick about his connections to Fellowship prior to the ad buy being pulled. Lutnick is a former president and CEO of Cantor Fitzgerald; his sons now run the firm. Fellowship launched saying it had more than $100 million from crypto-aligned backers and has received partial funding from Cantor Fitzgerald.

Paxton failed to win an outright victory in a March Republican primary and is scheduled to face Senator John Cornyn in a May 26 runoff. The Republican who secures the nomination is expected to face Democrat James Talarico in the November general election for one of Texas’s U.S. Senate seats.

Fellowship is among several new crypto-aligned PACs active this election cycle. Political action committees tied to the digital asset industry have supported candidates in both parties who favor pro-crypto policies. Other groups, including Fairshake, are expected to continue significant ad spending ahead of the 2026 midterms.

In Congress, Republicans have held a slim Senate majority since January 2025. That majority helped pass a stablecoin bill called the GENIUS Act. Lawmakers have been considering a comprehensive crypto market-structure bill since July 2025; delays and no scheduled full-Senate vote have left the measure pending. More than 120 organizations in the cryptocurrency and blockchain sector recently urged the Senate Banking Committee to hold a markup on the CLARITY Act so the full Senate can consider the bill.

The FEC record of Fellowship’s reported expenditure remains available to the public. Officials and representatives contacted for comment did not provide immediate responses.