A newly formed political action committee, The Fellowship PAC, which has been linked to Tether, has disclosed its first financial contribution ahead of the 2026 US congressional midterm elections. The PAC spent $300,000 on advertising for Georgia Republican 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 on crypto matters. Although the PAC has advertised itself as a major force in crypto campaign finance, it had not participated in the US midterm elections until its recent federal disclosure. The Fellowship PAC has been quiet about its formation and funding, despite its claims of being 'rooted in transparency.' The PAC's first expenditure has raised questions about potential self-dealing, as the payment may benefit Tether's US CEO and his relative.
However, according to Michael Beckel of the Issue One 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 for Fuller is not yet clear, but the funds were spent just as Fuller won his special election. The PAC's disclosures do not show a significant stockpile of contributions to support 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 on its social media feed, stating that it will support candidates who advocate for emerging digital assets technology.
The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives who will need campaign support for the upcoming primary and general election. 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 publicly stated his position on crypto and does not have a grade from the advocacy group Stand With Crypto.
The firm paid by the 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 the Fellowship PAC was announced 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.' The PAC's relatively small expenditure so far 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 hotly contested primaries already past or about to happen. Fairshake has expended millions in the early contests, and the Fellowship PAC may still have the opportunity to make a splash in the congressional field, which is likely to have significant implications for future crypto legislation.