A recently established crypto-focused political action committee, the Fellowship PAC, has made its first major expenditure, spending $300,000 on advertising for a Republican candidate through a firm co-founded by Tether's US CEO, Bo Hines. The PAC, which claims to be dedicated to transparency, has been linked to Tether, although the company has not confirmed the connection.
The advertising effort is in support of Georgia Republican Clay Fuller, who recently won a special election. The PAC's first expense filing to the Federal Election Commission indicates that the payment was made to Nxum Group, a company co-founded by Hines, his father, and a third partner. While setting up a super PAC and paying for services is not against US campaign-finance rules, the payment may raise questions about potential self-dealing. The Fellowship PAC's disclosures do not yet show a significant stockpile of contributions, despite an earlier announcement that it would be established with pledges of $100 million.
The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation. The PAC's first recipient of financial support, Fuller, has not publicly stated his position on crypto, but has the backing of President Trump. The Fellowship PAC's activities are being watched closely, as the US midterm elections are already underway, and the crypto industry is likely to need support from both parties in the future.