Crypto PAC Secures $11 Million in Funding, Partners with Tether US CEO's Ad Firm

A recently established cryptocurrency industry political action committee, known as Fellowship PAC, has initiated operations with substantial backing of $11 million. It has allocated $3 million for advertising services through Nxum Group, a company co-founded by Bo Hines, the CEO of Tether US. The super PAC is primarily supporting Republican candidates in congressional and gubernatorial elections, having received $10 million from Cantor Fitzgerald and $1 million from Anchorage Digital, a crypto bank, according to filings with the Federal Election Commission. The initial advertising expenditure has been channeled through Nxum Group, which was founded by Hines, his father, and another partner. Although Fellowship PAC has been associated with Tether since its inception, the majority of its funding originates from Cantor Fitzgerald, a New York-based financial services giant that handles Tether's stablecoin reserves. A significant portion of the PAC's funding has been allocated to support various Republican candidates, including Clay Fuller, Nate Morris, and Pete Ricketts, with disbursements totaling $300,000, $850,000, and $350,000, respectively. Nxum Group has received $3 million for its advertising services, marking a notable engagement in the PAC and campaign sector. The Fellowship PAC aims to promote transparency while supporting pro-crypto candidates, with a pledged backing of $100 million. However, the current funding level falls short of this initial promise. Anchorage Digital views its contribution as an investment in the US crypto policy process, emphasizing its commitment to advancing regulatory clarity for digital assets. The involvement of Tether executives in Fellowship PAC's activities raises questions about the potential for direct contributions from Tether or its US arm, given the restrictions on non-US entities participating in US campaign finances.