A newly-formed super PAC, The Fellowship PAC, has disclosed its first expenditure, with $300,000 going towards advertising for a Republican candidate through Nxum Group, a company co-founded by Bo Hines, the chief executive of Tether's US operation and a former adviser to President Donald Trump. This development comes ahead of the 2026 congressional midterm elections and marks the PAC's entry into the US political landscape.
The Fellowship PAC had previously been linked to Tether, although the company had declined to confirm the connection. The PAC, which claims to be rooted in transparency, has not responded to inquiries about its formation, funding, or the payment that may benefit Tether's US CEO and his relative. According to Michael Beckel, an expert at Issue One, a political reform organization, setting up a super PAC and paying for services is not against US campaign finance rules as long as the services are provided at fair market value. The Fellowship PAC's advertising effort is in support of Georgia Republican Clay Fuller, who recently won a special election.
The PAC's disclosures do not show a significant stockpile of contributions to back other candidates, despite an announcement last year that it would be established with pledges of $100 million. An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over the Fellowship PAC. The PAC became active again this month, announcing its chairman would be Jesse Spiro, the vice president of regulatory affairs for Tether's US arm. The Fellowship PAC says it will support candidates who recognize the importance of emerging digital assets technology and fostering economic growth.
The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives. The money spent by the Fellowship super PAC was an independent expenditure, meaning it had to be handled without strategizing with Fuller's campaign. The firm paid by the Fellowship PAC, Nxum, was co-founded by Bo Hines, who previously worked as a leading adviser to President Trump on crypto legislative advances. There is no federal record of Nxum as a regular service provider for additional political efforts.
The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation. When the Fellowship PAC was announced last year, it was presented as a contrast to previous political engagement, aiming to help the broader crypto ecosystem and not narrow or individual interests. It is possible that some or all of the promised $100 million is in the PAC's coffers already, as federal disclosures typically trail behind the movements of money.
The relatively young Tether US's stablecoin, USAT, has a market cap of about $37 million, suggesting the firm may not have the independent resources yet to fund a major PAC. According to Beckel, massive spending by an industry is something that lawmakers are taking seriously. The rival crypto super PAC, Fairshake, has expended millions in the early contests. The US midterm elections are already underway, with many of the hotly contested primaries already past or about to happen.
If the US House is taken over by a Democratic majority, the committees there will likely shift their agenda to challenge Trump's legislative efforts and investigate the administration's actions.