A newly formed super PAC, The Fellowship, with reported ties to Tether, has disclosed its first financial expenditure ahead of the 2026 US congressional midterm elections. The PAC spent $300,000 on advertising for Republican candidate Clay Fuller through Nxum Group, a firm co-founded by Bo Hines, who currently serves as the CEO of Tether's US operations and previously advised President Donald Trump. This development marks the first significant activity from The Fellowship, which has been described as a crypto-focused campaign finance powerhouse but had not previously engaged in the US midterm elections.

Despite its advertised commitment to transparency, the PAC has not responded to inquiries about its formation, funding, or the recent payment that may benefit Tether's US CEO and his relative. According to Michael Beckel, an expert at the political reform organization Issue One, setting up a super PAC and paying for services from affiliated entities is not inherently against US campaign finance rules, as long as the services are provided at fair market value. The Fellowship's support for Fuller, an incoming Republican member of the House of Representatives, is its first publicly disclosed financial backing for a candidate.

The PAC's current financial disclosures do not show a significant stockpile of contributions, despite earlier announcements suggesting it would be established with $100 million in pledges. An outside spokesperson for Tether maintained that Tether International has no affiliation or oversight over The Fellowship PAC, while also declining to comment on Tether US or respond to further questions. The Fellowship PAC's chairman, Jesse Spiro, who is also the vice president of regulatory affairs for Tether's US arm, has not responded to attempts to contact him.

The PAC has begun endorsing Republican politicians seeking various offices, stating its support for advocates of emerging digital assets technology. The first recipient of The Fellowship's financial support, Fuller, recently won a special election and will require continued campaign support for upcoming elections. The money spent by The Fellowship was an independent expenditure, indicating it was handled without coordination with Fuller's campaign.

As a candidate, Fuller has not publicly articulated his stance on crypto, and his campaign has not been listed among The Fellowship's endorsements. The firm paid by The Fellowship PAC, Nxum, was co-founded by Bo Hines, who later became a leading adviser to President Trump on crypto legislative matters. It is unclear whether Hines still maintains financial ties to 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 was announced, it was presented as a contrast to previous crypto-focused political efforts, emphasizing its commitment to transparency and trust. However, the PAC's current activities and disclosures have raised questions about its adherence to these principles. The relatively small market cap of Tether US's stablecoin, USAT, suggests that the firm may not have the independent resources to fund a major PAC, potentially relying on external contributions.

According to Beckel, the impact of such super PACs should not be underestimated, as massive spending by industries can significantly influence lawmakers. The Fellowship PAC's activities are being closely watched, especially in comparison to the leading crypto super PAC, Fairshake, which has already expended millions in the early contests.

The US midterm elections are underway, with many primaries already past or imminent, and the outcome is likely to have significant implications for future crypto legislation.