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

A recently-established crypto industry PAC, Fellowship PAC, has commenced operations with an $11 million investment and has allocated $3 million for advertising services through Nxum Group, a company co-founded by Tether US CEO Bo Hines. The super PAC is concentrating its efforts on supporting Republican candidates in congressional and gubernatorial elections. According to Federal Election Commission filings, the PAC has gathered $10 million from Cantor Fitzgerald and $1 million from Anchorage Digital. Its initial advertising expenditure of $3 million has been funneled to Nxum Group, which was established by Hines, his father, and another partner. Although Fellowship PAC has been linked to Tether since its inception and features a senior Tether executive as its chairman, the majority of its funding originated from Cantor Fitzgerald, a prominent New York financial services firm that handles Tether's stablecoin reserves. Cantor's former chief, Howard Lutnick, currently serves as Trump's Commerce Secretary, while his children have taken over the business. A representative from Tether US did not immediately respond to a request for comment, and a Cantor spokesperson declined to comment on their involvement with the super PAC. Upon its public launch, Fellowship PAC announced it would wield $100 million, rivaling the leading crypto PAC, Fairshake. The PAC's treasurer is a Cantor executive. So far, the PAC has allocated $300,000 to support Clay Fuller, the newest member of the U.S. House of Representatives; $850,000 to back Nate Morris for a U.S. Senate seat in Kentucky; and $350,000 to support incumbent Nebraska Senator Pete Ricketts. Nxum has received $3 million in disbursements for advertising, despite not having a significant track record in serving PACs or campaigns prior to this. When its formation was announced, Fellowship PAC stated it had $100 million in pledged backing and would advocate for transparency while supporting pro-crypto candidates. However, this level of funding has yet to materialize. Anchorage Digital described its contribution as an investment in the U.S. crypto policy process, emphasizing its commitment to advancing regulatory clarity for digital assets in the United States.