GOP Officials Halt Crypto PAC Ad Buy for Paxton

Senior Republican officials contacted Commerce Secretary Howard Lutnick this week after a cryptocurrency-linked super PAC signaled plans to spend $1.75 million supporting Texas Attorney General Ken Paxton in his upcoming GOP Senate runoff against incumbent Sen. John Cornyn. The intervention, prompted by concerns over potential party divisions, led to the planned advertising effort being abandoned before any ads aired.

The episode unfolded following a Federal Election Commission filing on Tuesday by Fellowship PAC, a group focused on backing candidates favorable to digital asset innovation. The filing outlined the $1.75 million ad buy to promote Paxton, who finished second in the March GOP primary and now faces Cornyn in a May 26 runoff to determine the party's nominee for Texas's 2026 Senate race. President Donald Trump has not yet endorsed either candidate, heightening tensions within Republican circles already split over the contest.

Sources familiar with the matter said GOP leaders viewed the PAC's involvement as a misstep that could exacerbate internal rifts and complicate efforts to retain the Senate seat. They reached out to Lutnick, whose former firm, Cantor Fitzgerald,...