Crypto Money Just Reshaped Texas Politics — Here’s What Happened

TLDR

• Crypto-backed PACs helped six candidates win Texas congressional runoffs, spending over $10 million combined.
• Fairshake PAC spent $6.5 million to oust longtime crypto critic Rep. Al Green in Texas’ 18th district.
• The Fellowship PAC, linked to Tether and Cantor Fitzgerald, backed Ken Paxton’s Senate win with $500,000.
• New crypto PACs like Digital Freedom Fund and Fellowship are leaning Republican, raising questions about the industry’s bipartisan strategy.
• Democrats hold a 77% chance to win the House majority per Kalshi, which could limit crypto-friendly Republicans’ influence.

Crypto-aligned political action committees flexed their financial muscle in this week’s Texas primary runoffs, helping six candidates win congressional races and spending more than $10 million in the process. The results are the latest sign of the growing influence of the crypto industry in US elections.

The biggest win came in Texas’ 18th congressional district, where Democrat Christian Menefee defeated longtime incumbent Rep. Al Green. Green was a vocal critic of the crypto industry and had voted against crypto legislation multiple times. He also co-sponsored a bill that would have banned President Trump from personal crypto business dealings. Fairshake PAC spent $6.5 million on ads supporting Menefee in what it called a defining moment.

The PACs and the Money

Fairshake, which had more than $193 million in its war chest as of January, is the dominant force in crypto political spending. It operates through two affiliate PACs: Protect Progress, which backs Democrats, and Defend American Jobs, which backs Republicans. On the Republican side, Tom Sell, Alex Mealer, Jon Bonck, and Carlos De La Cruz all won their races with support from Defend American Jobs.

Federal Election Commission records show the crypto-aligned PACs collectively spent over $10 million across the six Texas races. Fairshake’s primary backers are Coinbase, Ripple, and venture firm Andreessen Horowitz.

A newer entrant, the Fellowship PAC, backed Republican Texas Attorney General Ken Paxton’s Senate win with $500,000. Fellowship is linked to Tether and Cantor Fitzgerald. Almost all of its chosen candidates carry endorsements from President Trump.

The Blockchain Leadership Fund, backed by Anchorage Digital and Chainlink, also supported Menefee and several other candidates in smaller amounts.

A Shift Toward Republicans?

While Fairshake has maintained a bipartisan approach, newer PACs are tilting Republican. The Winklevoss twins’ Digital Freedom Fund was set up with $21 million and is focused on Republican candidates. Fellowship has so far backed only Republicans.

This shift comes at a tricky time. Prediction market Kalshi gives Democrats a 77% chance of winning back the House majority in November. If that happens, Republican candidates backed by crypto PACs may end up in the minority with less power to shape digital asset policy.

The industry has also had losses. In Illinois, Fairshake spent over $10 million trying to defeat Lt. Gov. Juliana Stratton, who still won her Democratic primary. That means a candidate the crypto industry opposed could land in the Senate next year.

Next up, six states hold primaries on June 2, including California, where crypto PAC spending has been relatively light. Protect Progress has committed around $500,000 across several California House races. The governor’s race, which includes former Senate candidate Katie Porter, has drawn no apparent crypto PAC spending so far.

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