Cryptocurrency-linked political action committee Fellowship (PAC), led by the head of government affairs at stablecoin issuer Tether, reported spending more than $3 million on ads related to U.S. Senate and House of Representatives races, with the majority intending to support the Texas Republican candidate.
In a Tuesday filing with the U.S. Federal Election Commission (FEC), Fellowship PAC revealed that he spent $1.75 million to support Texas Attorney General Ken Paxton. The Republican will face incumbent Sen. John Cornyn in a runoff on May 26 to determine who will be the party’s nominee in the 2026 U.S. Senate race.
Fellowship PAC spending report on Ken Paxton. Source: FEC
In addition to Paxton, the PAC reported spending $350,000 on advertising for Mike Collins in the Georgia Senate race, $350,000 on Barry Moore in the Alabama Senate race, and $250,000 and $350,000 on Blake Miguez and Julia Letlow, respectively, in the House and Senate races in Louisiana. All spending went through Nxum Group, a marketing firm co-founded by former White House cryptocurrency adviser and Tether US CEO Bo Hines.
The grant was launched in September, claiming to have over $100 million from undisclosed investors linked to the crypto industry. While the PAC has since reported an $11 million contribution to the FEC, no other filings or public records have shown cryptocurrency-related supporters.
Crypto-backed PACs like Fellowship and Fairshake are expected to influence the results of the 2026 U.S. midterm elections through media and advertising spending to support candidates they consider “pro-crypto.” Fairshake and its affiliates reported spending more than $131 million in 2024, likely influencing voters in key battleground states.
Related: Texas Lt. Lt. Calls for Investigation of Cryptocurrency Markets and Predictions
Paxton’s time as Texas attorney general was plagued by corruption allegations, leading to his impeachment in the state House of Representatives in 2023 — he was later acquitted by the Texas Senate. Paxton or Cornyn will likely face Democratic candidate James Talarico in the November U.S. Senate elections.
Kalshi suspends and fines Texas candidate for insider trading
As the U.S. state primaries continue and the general election approaches, many prediction market users are betting on the outcome of events in races huge and petite, including some candidates themselves.
On Wednesday, prediction markets platform Kalshi announced fines and bans against three candidates in Minnesota, Texas and Virginia after it was discovered they had been placing bets on each other’s races. Texas candidate Ezekiel Enriquez “purchased contracts worth less than $100 related to his own candidacy” for Texas’ 21st Congressional District, According to to Kalshi.
“Pursuant to the terms of the settlement, Kalshi suspended Enriquez from direct or indirect access to Kalshi for a period of five years and imposed a financial penalty in the amount of $784.20,” the company said.
Warehouse: How to Fix Suspected Insider Trading on Polymarket and Kalshi
