A newly formed crypto-focused political action committee, the Fellowship PAC, has made its first major expenditure, spending $300,000 on advertising for a Republican candidate through a firm tied to Tether's US CEO. The PAC, which has been linked to Tether, made the payment to Nxum Group, a company co-founded by Bo Hines, who now serves as the chief executive of Tether's US arm and previously advised President Donald Trump on crypto matters.
The advertising effort supported Georgia Republican Clay Fuller, who recently won a special election. The PAC's first financial disclosure has raised questions about potential self-dealing, as the payment may benefit Hines and his relative. However, according to Michael Beckel, an expert at the political reform organization Issue One, there is no blanket prohibition on self-dealing in political committees like the Fellowship PAC, as long as services are provided at fair market value. The PAC's activity has sparked interest in its potential impact on the crypto industry's legislative efforts, particularly given its ties to Tether and its stated goal of supporting candidates who advocate for emerging digital assets technology.
The Fellowship PAC's formation and funding have been shrouded in mystery, with the company declining to confirm its connection to Tether. Despite announcing pledges of $100 million, the PAC's current accounts show no stockpile of contributions.
An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over the Fellowship PAC. The PAC's first recipient of financial support, Fuller, has not publicly broadcast a position on crypto, but he has the backing of President Trump.
The money spent by the Fellowship super PAC was an independent expenditure, meaning it had to be handled without strategizing with Fuller's campaign. The firm paid by the Fellowship PAC, Nxum, has no federal record as a regular service provider for additional political efforts, but it did contribute billboard advertising valued at $1 million for MAGA Inc. in support of Trump in 2024.
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, it was presented as a contrast from previous political engagement, with a focus on transparency and trust.
However, the PAC's disclosures so far do not demonstrate a significant stockpile of contributions to back other candidates. The PAC's activity has sparked interest in its potential impact on the crypto industry's legislative efforts, particularly given its ties to Tether and its stated goal of supporting candidates who advocate for emerging digital assets technology. With the US midterm elections already underway, the Fellowship PAC's spending is being closely watched, especially in comparison to the leading crypto super PAC, Fairshake, which has expended millions in the early contests. The crypto industry may need a lot of friends from both parties, given the likelihood of a Democratic majority in the US House and the challenging lineup of races for Democrats to take the Senate.