A newly formed super PAC, The Fellowship, has made its first major expenditure, spending $300,000 on advertising for a Republican candidate in Georgia through a firm founded by Tether's US CEO, Bo Hines. This development marks the first significant activity from the PAC, which has been shrouded in mystery despite being linked to Tether.
The Fellowship PAC has been touted as a major player in the crypto sector's campaign finance efforts, with initial pledges of $100 million. However, its actual financial backing and spending have been unclear until now. The recent filing with the Federal Election Commission reveals that the PAC made an independent expenditure to support Clay Fuller, a Republican candidate for the House of Representatives, through Nxum Group, a company co-founded by Hines. The move raises questions about potential self-dealing, given Hines' role in both Tether and Nxum.
According to experts, while there is no blanket prohibition on self-dealing in political committees, services must be provided at fair market value. The Fellowship's advertising effort on behalf of Fuller is its first notable action, and the PAC's current accounts show no stockpile of contributions, despite initial announcements of significant funding. The PAC's ties to Tether have been a subject of interest, with Tether International denying any affiliation or oversight.
As the US midterm elections approach, the crypto sector is watching the activities of The Fellowship and other super PACs closely, given the potential impact on future crypto legislation.