A newly established crypto-focused political action committee, the Fellowship PAC, has made its first expenditure, disclosing a $300,000 ad buy for a Republican candidate through a firm tied to Tether's US CEO, Bo Hines. The PAC, which claims to be rooted in transparency, has been linked to Tether, although the company has declined to confirm the connection. The ad buy was made through Nxum Group, a company co-founded by Hines and his father, Todd Hines.
The expenditure was made on behalf of Georgia Republican Clay Fuller, who recently won a special election. The Fellowship PAC's activities have raised questions about potential self-dealing, as Hines is a former adviser to President Trump and currently serves as the CEO of Tether's US arm.
According to campaign finance rules, self-dealing is not prohibited as long as services are provided at fair market value. The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation.
The Fellowship PAC was announced last year with pledges of $100 million, but its current accounts show no contributions. The PAC's activities are seen as an effort to support candidates who are advocates of emerging digital assets technology.
The crypto industry is expected to face significant challenges in the upcoming congressional elections, and the Fellowship PAC's efforts may be crucial in shaping the legislative agenda.