Texas crypto-backed PACs boost runoff stakes in Senate and House primaries

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Texas crypto PACs influence primaries

Highlights

Crypto-backed PACs spent over $5 million supporting Christian Menefee and $500,000 supporting Ken Paxton in Tuesday's Texas primary runoffs.
Both races escalate in importance as winners could affect party control in Congress and influence future crypto policy, with industry-friendly legislation like the GENIUS Act at stake.
Prediction markets Kalshi and Polymarket assign Menefee a 91% and Paxton a 96% chance of winning, with Senate contest betting volume exceeding $16 million.

Runoff spending and campaign positioning

As reported by Cointelegraph, crypto-industry aligned groups are directing millions of dollars into Tuesday's Texas primary runoffs, backing challenger Christian Menefee in the Democratic contest for the 18th congressional district and Ken Paxton in the Republican race for U.S. Senate.

Protect Progress, which is affiliated with the Ripple- and Coinbase-backed Fairshake PAC, reports $5 million in spending to support Menefee against incumbent Al Green, including $2.8 million in advertising opposing Green. Menefee also has the endorsement of the Blockchain Leadership Fund, backed by Anchorage Digital and Chainlink Labs, though that committee has not reported expenditures as of Monday.

In the Senate race, the Fellowship PAC, funded by Cantor Fitzgerald and Anchorage, reports spending $500,000 to support Paxton over incumbent John Cornyn. That expenditure comes roughly a day after President Donald Trump endorses Paxton and criticizes Cornyn for being late to back his presidential bid.

Prediction markets and congressional implications

Neither contest produces a majority winner in Texas' March primaries, sending both to runoffs that now carry broader significance for party control and crypto policy. The eventual winners could influence November's general election outcomes in a House district and one of Texas' two Senate seats, affecting the balance of power in Congress in 2027.

Under a Republican majority, lawmakers have passed legislation backed by the crypto industry, including the stablecoin GENIUS Act. That makes the Texas runoffs especially important for political groups seeking a more favorable policy environment for digital assets.

Prediction markets are signaling strong momentum for the challengers. Kalshi gives Menefee a 91% chance against Green and Paxton a 96% chance against Cornyn, while bets on the Senate contest exceed $16 million in total volume; rival platform Polymarket shows similarly strong odds for both candidates.

Our earlier coverage of the ECB’s warning on euro-denominated stablecoins explained why EU policymakers are resisting any relaxation of MiCA rules, arguing it could weaken banks and complicate monetary policy. The article also linked this tougher stance to market behavior, noting it may curb cross-border speculative flows and help keep EUR/COP trading in a constrained range despite mixed technical signals.

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