A new political action committee, the Fellowship PAC, has made its first major expenditure, spending $300,000 on advertising for a Republican candidate in Georgia through a firm co-founded by Tether's US CEO, Bo Hines. The PAC, which has ties to Tether, has been promoting itself as a major player in crypto campaign finance, but its first major expenditure has raised questions about potential self-dealing.
According to campaign finance rules, there is no blanket prohibition on self-dealing, but services must be provided at fair market value. The Fellowship PAC's first major expenditure is an independent expenditure, meaning it was made without coordination with the candidate's campaign. The PAC has been endorsed by several Republican politicians and has stated its goal of supporting candidates who advocate for emerging digital assets technology. However, the PAC's disclosures do not yet show a significant stockpile of contributions, despite an announcement last year 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 Fellowship PAC's activities have raised questions about the potential for self-dealing and the source of its funding, with some experts suggesting that the PAC may not have the independent resources to fund major expenditures.