The Fellowship PAC, a newly formed crypto-focused political action committee, has disclosed its first expenditure in a federal filing, revealing a $300,000 ad buy for Georgia Republican Clay Fuller through Nxum Group, a company co-founded by Bo Hines, the chief executive of Tether's US arm and a former adviser to President Donald Trump. The PAC, which claims to be 'rooted in transparency,' has been tied to Tether, although the company has declined to confirm the connection. The ad buy, made through Nxum Group, may benefit Hines and his relative, who co-founded the firm.
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 on behalf of Fuller is not yet clear, but the funds were spent just as Fuller won his special election. The PAC's disclosures do not yet 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 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 on its social media feed. 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. 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, included Bo Hines among its owners when he filed ethics disclosures last year as a White House official. There is no federal record for 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 as a new PAC last year, it was presented as a contrast from previous political engagement, aiming to help the broader crypto ecosystem and not 'narrow or individual interests.' The PAC's spending is still a drop in the bucket compared to the receipts of the leading crypto super PAC, Fairshake. The US midterm elections are already underway, with many of the hotly contested primaries already past or about to happen. Fairshake 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.