Crypto-focused political committees spent more than $9 million in Texas this election cycle, delivering a series of primary victories for industry-aligned candidates across both parties. According to CoinDesk, this represents a significant escalation in the crypto industry's political influence, with Fairshake's Republican affiliate Defend American Jobs spending roughly $1.8 million backing four winning Republican candidates in low-turnout runoffs. The separate crypto-focused Fellowship PAC supported Texas Attorney General Ken Paxton to the tune of $500,000 in his successful challenge to Sen. John Cornyn. This aggressive spending strategy signals the crypto industry's preparation for the 2026 midterms, when Democrats are favored — by a slim margin — to sweep both the House and Senate.
Christian Menefee, a 38-year-old pro-crypto Democratic representative, has defeated Al Green, a 78-year-old 11-term incumbent, in the Democratic primary runoff for Texas's 18th Congressional District. According to NBC News, Menefee secured the victory after getting 46% of the primary vote to Green's 44% in the first round on March 3, pushing the race to a runoff since neither candidate achieved a majority. While both representatives are critics of President Trump, they hold contrasting views on cryptocurrency and blockchain technology. Green's defeat marks the end of his two-decade run in Congress, as he was seeking a 12th term. Green became the first incumbent Democrat to lose a primary in 2026, marking a significant shift in the party's political landscape.
Menefee has embraced blockchain technology, writing on his official website that it has the potential to increase trust, transparency, and efficiency in areas such as finance and supply chains. He has received an 'A' rating from Stand with Crypto. In contrast, Green has been strongly critical of cryptocurrency, warning that digital assets could threaten the dollar's global role and national security. Green notably voted against the GENIUS stablecoin act and the Clarity Act and holds an 'F' rating from Stand with Crypto. In a speech on the House floor in May, Green ripped the industry and called those in his party who sided with it 'Cryptocrats.' "I rise as an unbought, liberated, unafraid Democrat, unbought by crypto cash," he declared in the speech.
The decisive factor in this race was millions of dollars in spending by Fairshake-affiliated super PAC Protect Progress backing Menefee against Green. According to NBC News, Menefee benefited from more than $5 million in outside spending from the super PAC, which represents the first Democratic incumbent to lose their seat this cycle due to anti-crypto hostility. Protect Progress spent another $2.8 million against Al Green, who was viewed as 'strongly against crypto' after voting against the CLARITY Act and GENIUS Act in the past. Geoff Vetter, spokesperson for Fairshake, stated that "Rep. Green's defeat proves that anti-crypto hostility carries real electoral consequences," emphasizing that Fairshake was the difference-maker in this race. Vetter added that "Fairshake was the difference-maker in this race, and we will continue to aggressively back leaders like Rep. Menefee across the country." The super PAC aligned with the crypto industry poured $6.5 million into the race, partly to make an example of Green, who sits on the powerful House Financial Services Committee.
The victory extends beyond this single race, with several other candidates backed by Fairshake and other crypto PACs securing victories in primary runoffs, as reported by journalist Eleanor Terrett. This includes crypto PAC-backed victories for Texas Attorney General Ken Paxton in the Republican U.S. Senate runoff and Alex Mealer in the GOP primary runoff for Texas House District 9. According to The Block's data dashboard, Fairshake and affiliated committees raised over $395 million during the 2024 and 2026 election cycles, with major contributors including Coinbase, Ripple, and venture capital firm Andreessen Horowitz. The outgoing Rep. Jasmine Crockett, who unsuccessfully ran for the Senate this year, appeared in one of the group's ads supporting Menefee, highlighting the growing influence of crypto-aligned political spending in Texas elections. Four other representatives backed by the industry also won, including Carlos De La Cruz (Texas 35th District) and Alex Mealer (Texas 9th District). Additionally, Tom Sell (Texas 19th District) and John Bonck (Texas 38th District) won their respective races, bringing the total wins to six. The Texas victory covered Democrats and Republicans, underscoring the industry's bipartisan support, provided a lawmaker is not against the industry. The end goal is to get enough backing for the passage of the crypto market structure bill, the CLARITY Act, even if it is pushed to next year.
The political environment is getting worse for the CLARITY Act, with TD Cowen casting doubts on the bill's progress, citing conflict-of-interest provisions as a potential stumbling block. In a Tuesday note to clients, Jaret Seiberg, managing director at TD Cowen, echoed similar sentiment, citing that conflict-of-interest provisions demands could be a stumbling block for the bill. The political environment is getting worse for the Clarity Act, with Jake Chervinsky, CEO of the Hyperliquid Policy Center, cautioning that there 'isn't much time left' for the CLARITY Act. The bill cleared the Senate committee hurdle in mid-May, but the ethics provisions issue could deny the bill Democratic Party support for the bill to pass the Senate floor vote. As of writing, the odds of the bill's passage dropped below 60%. The CLARITY Act will be competing with other bills for a Senate floor vote in June, but uncertainty is deepening around its prospects.
