Crypto PAC Secures $11 Million in Funding, Partners with Tether US CEO's Advertising Firm

A recently launched crypto industry political action committee, known as Fellowship PAC, has begun its operations with an $11 million investment and has already reserved $3 million in advertising services through Nxum Group, a firm co-founded by Bo Hines, the CEO of Tether US. The super PAC is primarily supporting Republican candidates in congressional and gubernatorial elections, having received $10 million from Cantor Fitzgerald and $1 million from Anchorage Digital, a crypto bank, according to filings with the Federal Election Commission. The initial $3 million expenditure on political advertising for favored candidates has been allocated to Nxum Group, which was founded by Hines, his father, and another partner. Although Fellowship PAC has been linked to Tether since its inception and has a senior Tether executive as its chairman, the majority of its funding originated from Cantor Fitzgerald, a New York-based financial services giant that manages Tether's stablecoin reserves. A representative from Tether US did not immediately respond to a request for comment, while a Cantor spokesperson declined to comment on the company's involvement with the super PAC. When Fellowship PAC was first announced, it claimed it would have $100 million at its disposal, rivaling the leading crypto PAC, Fairshake. The PAC's treasurer is an executive at Cantor. So far, the PAC has dedicated $300,000 to support Clay Fuller, the newest member of the U.S. House of Representatives; $850,000 to back Nate Morris for a U.S. Senate seat in Kentucky; and $350,000 to support incumbent Nebraska Senator Pete Ricketts, according to Federal Election Commission filings. The filings also revealed that Nxum has received $3 million in disbursements for advertising services. Prior to this, Nxum had a limited track record in serving PACs or campaigns, with its primary claim to fame being a $1 million donation of billboard ads to MAGA Inc. in 2024. Upon its formation, Fellowship PAC stated it had $100 million in pledged backing and would advocate for transparency while supporting pro-crypto candidates, although this level of funding has not yet materialized. Anchorage Digital described its contribution as an investment in the U.S. crypto policy process, stating it has made a corporate contribution to the Fellowship PAC as part of its broader, bipartisan approach to advancing regulatory clarity for digital assets in the United States. Despite the involvement of Tether executives in Fellowship PAC's activities, it remains unclear whether Tether or its U.S. arm, Tether US, would be able to make direct contributions to the PAC, as non-U.S. entities are not permitted to participate directly in U.S. campaign finances.