A newly established political action committee, The Fellowship PAC, has disclosed its first financial contribution ahead of the upcoming congressional midterm elections. The PAC, which has been linked to Tether, spent $300,000 on advertising for Republican candidate Clay Fuller through Nxum Group, a firm co-founded by Bo Hines, the chief executive of Tether's US arm and a former adviser to President Donald Trump. Despite its declared commitment to transparency, The Fellowship PAC 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, a representative of the political reform organization Issue One, 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 on behalf of Fuller is its first expense filing to the Federal Election Commission, and the funds were disbursed as Fuller was winning his special election. However, the PAC's current accounts still show no contributions, 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, but did not respond to further inquiries about Tether US.

The PAC became active again this month when it announced its chairman would be Jesse Spiro, the vice president of regulatory affairs for Tether's US arm. The Fellowship PAC has begun listing endorsements for Republican politicians seeking House and Senate seats, as well as a candidate for governor in South Carolina, on its social media feed. The PAC claims it will support candidates who recognize the importance of fostering economic growth and reinforcing the US as the global leader in next-generation financial infrastructure. The first recipient of financial support from The Fellowship PAC is incoming Republican member of the House of Representatives Clay Fuller, who won a special election to replace Marjorie Taylor Green.

The money spent by The Fellowship super PAC was an independent expenditure, meaning it had to be handled without strategizing with Fuller's campaign. As a candidate, Fuller has not broadcast a position on crypto and does not have a grade at Stand With Crypto, an advocacy group that evaluates candidates' views. The firm paid by The Fellowship PAC, Nxum, was co-founded by Bo Hines, who filed ethics disclosures last year as a White House official.

It is unclear whether financial ties remain between Hines and Nxum. 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, with a commitment to transparency and trust.

However, the PAC's disclosures do not yet demonstrate a stockpile of contributions to back other candidates. 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, but it is possible that some or all of the promised $100 million is in the PAC's coffers already.

The US midterm elections are already underway, with many of the hotly contested primaries already past or about to happen. Fairshake, a rival crypto super PAC, has expended millions in the early contests.

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. The crypto industry will likely need a lot of friends from both parties, and it's not too late for The Fellowship PAC to make a splash in a congressional field that's likely to have major significance for future crypto legislation.