Crypto PACs Help Decide Key Texas Runoffs as Congress Rewrites Digital Asset Rules

Crypto-backed political groups supported several winning candidates in Texas primary runoffs Tuesday, highlighting the digital asset industry’s growing role in US elections as Congress debates new rules for crypto markets.

Attorney General Ken Paxton won the Republican US Senate runoff against four-term Senator John Cornyn by a wide margin, according to Texas primary runoff results, and will face Democratic state Representative James Talarico in November.

In Houston’s 18th Congressional District, Democrat Christian Menefee unseated fellow Democrat representative Al Green in a decisive win after Republican-led redistricting forced the two incumbents into the same district, ousting one of the state’s most senior House members.

Democrats and Republicans Alex Mealer and Jon Bonck also secured their party’s nominations in competitive Houston-area House races.

The contests drew heavy spending from crypto-aligned political action committees (PACs) focused on a small number of high-stakes races, and come as Congress debates new rules for digital asset markets, including legislation to define crypto market structure and establish a framework for dollar‑pegged stablecoins.

Stand With Crypto assigned Al Green an “F” rating. Source: Stand With Crypto

Victories by candidates backed by crypto-focused PACs in a politically influential state could give the industry additional allies as those measures advance.

Crypto money reshapes key Texas races

Two races in particular show how that money is being deployed. Protect Progress, an affiliate of the Fairshake super PAC backed by firms including Ripple and Coinbase, reported spending about $5 million to support Menefee and a further $2.8 million on advertising opposing Green in the Houston race.

Another crypto-focused group, Fellowship PAC, funded in part by financial firm Cantor Fitzgerald and crypto custodian Anchorage Digital, reported roughly $500,000 in spending to boost Paxton over Cornyn in the Senate runoff.

Fairshake’s Republican affiliate, Defend American Jobs, also backed four winning Republican candidates, Jon Bonck, Tom Sell, Carlos De La Cruz and Alex Mealer.

Related: Texas Lt. Gov. calls for study of crypto, prediction markets 

Texas runoffs test crypto’s political power

Bitcoin-focused policy advocate Dennis Porter commented on Menefee’s victory, saying, “A pro crypto Democrat just ousted a 20-year incumbent Democrat who was anti crypto. Nature is healing,” a nod to what many in the industry saw as years of Democratic-led “Operation Choke Point 2.0,” campaigns, in which bank regulators and enforcement agencies have been accused of squeezing crypto firms out of the financial system.

While much of crypto PACs’ recent spending in the state has gone to Republican candidates, Menefee’s win gives the groups a high-profile Democratic ally in Texas.

The crypto advocacy group, Stand With Crypto, assigned Green an F grade for his strong opposition to industry-backed legislation, while Menefee is rated as supportive of digital asset innovation.

Prediction markets had strongly favored the crypto-aligned challengers heading into election day. Contracts on regulated and crypto-native platforms implied odds of over 90% that both Paxton and Menefee would prevail, with nearly $15 million reportedly traded on markets tied specifically to the Paxton vs Cornyn runoff.

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