A newly established super PAC, Fellowship PAC, which has been linked to Tether, has disclosed its first expenditure, spending $300,000 on advertising for a Republican candidate through Nxum Group, a firm co-founded by Bo Hines, who now serves as the CEO of Tether's US operations and previously advised President Donald Trump. Despite its announcement last year as a major player in crypto campaign finance, the PAC had not been involved in the US midterm elections until now. The $300,000 expenditure was made to support Georgia Republican Clay Fuller.

The PAC, which claims to be rooted in transparency, has not responded to questions 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 PAC's advertising effort for Fuller is not yet clear, but the funds were spent as Fuller was winning his special election.

The PAC's current accounts still show zero, 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 Fellowship PAC, but did not respond to additional questions 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.

Fellowship also began listing endorsements for Republican politicians on its social media feed, stating it will support advocates of emerging digital assets technology. The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives, and the money spent by the Fellowship super PAC was an independent expenditure.

The firm paid by 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 Fellowship was announced as a new PAC 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, but it is also possible that the super PAC may not materialize as a significant player. The rival crypto super PAC, Fairshake, has expended millions in the early contests, and the US midterm elections are already underway. 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 may need a lot of friends from both parties, and it is not too late for Fellowship to make a splash in the congressional field.