Crypto PAC Secures $11 Million in Funding, Partners with Tether US CEO-Founded Firm for Ad Services

A recently launched cryptocurrency industry political action committee, known as Fellowship PAC, has commenced operations with an $11 million backing and has already reserved $3 million in advertising services through Nxum Group, a firm co-established by Bo Hines, the CEO of Tether US. The super PAC is primarily supporting Republican candidates in congressional and gubernatorial elections, with $10 million of its initial funding coming from Cantor Fitzgerald and $1 million from Anchorage Digital, a crypto bank, as per Federal Election Commission filings. The initial $3 million expenditure on political advertising for its preferred candidates has been allocated to Nxum Group, which was founded by Hines, his father, and another partner. Although Fellowship PAC has been closely associated with 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 handles Tether's stablecoin reserves. Cantor's former chief, Howard Lutnick, currently serves as the US Commerce Secretary, while his children have taken over the company's operations. A representative from Tether US did not immediately respond to a request for comment, and a Cantor spokesperson declined to comment on their involvement with the super PAC. Upon its public launch, Fellowship PAC announced that it would wield $100 million, rivaling the leading crypto PAC, Fairshake. The PAC's treasurer is an executive at Cantor. To date, the PAC has allocated $300,000 to support Clay Fuller, the newest member of the US House of Representatives; $850,000 to back Nate Morris for a US 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 did not have a significant 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, shortly before Hines took on a high-profile job at the White House. Upon its formation, Fellowship PAC stated that it had $100 million in pledged backing and would champion transparency as it supported pro-crypto candidates, although this level of funding has yet to materialize. Anchorage Digital, the first crypto-native bank to receive a US federal charter, described its contribution as an investment in the US crypto policy process, stating that 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 operations, it remains unclear whether Tether or its US arm, Tether US, would be able to make direct contributions to the PAC, as non-US entities are not permitted to directly participate in US campaign finances.