A newly formed crypto-focused political action committee, the Fellowship PAC, has made its inaugural expenditure, spending $300,000 on advertising for a Republican candidate through a company co-founded by Tether's US CEO, Bo Hines. The PAC, which claims to be rooted in transparency, has ties to Tether, although the company has not confirmed the connection. The advertising effort is in support of Georgia Republican Clay Fuller, who recently won a special election.
The payment to Nxum Group, a firm co-founded by Hines, has raised questions about potential self-dealing, but experts say it is not against US campaign-finance rules as long as the services provided are at fair-market rates. The Fellowship PAC's disclosures do not yet show a significant stockpile of contributions, despite an announcement last year that it would be established with pledges of $100 million.
The PAC's activity has sparked concerns about the potential influence of the crypto industry on US politics, particularly given the ties between Tether and the PAC's leadership.