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

A recently established crypto industry political action committee, known as Fellowship PAC, has launched with substantial financial backing of $11 million. It has already committed $3 million for advertising services to Nxum Group, a company founded by Tether US CEO Bo Hines. The super PAC is concentrating its efforts on supporting Republican candidates in Congressional and gubernatorial races. According to filings with the Federal Election Commission, the initial funding of $10 million and $1 million, respectively, came from Cantor Fitzgerald and Anchorage Digital. The $3 million allocated for advertising has been assigned to Nxum Group, which was established by Hines, his father, and another partner. Although Fellowship PAC has been closely associated with Tether since its inception, the primary funding source is the New York-based financial services giant Cantor Fitzgerald, which handles Tether's stablecoin reserves. Cantor's former CEO, Howard Lutnick, now serves as the US Commerce Secretary, with his children taking over the company's operations. A representative of Tether US was unavailable for comment, while a Cantor spokesperson declined to discuss their involvement with the super PAC. Initially, Fellowship PAC announced it would have $100 million at its disposal, rivaling the prominent crypto PAC, Fairshake. The PAC's treasurer is an executive at Cantor Fitzgerald. The committee has so far dedicated $300,000 to support Clay Fuller, the newest member of the US House of Representatives; $850,000 to back Nate Morris for a US Senate seat in Kentucky; and $350,000 to support incumbent Nebraska Senator Pete Ricketts. Nxum Group received $3 million in disbursements for advertising services, despite having a limited track record in serving PACs or campaigns prior to this. Upon its formation, Fellowship PAC pledged $100 million in backing and vowed to champion transparency in supporting pro-crypto candidates, although this level of funding has yet to materialize. Anchorage Digital, the first crypto-native bank to receive a US federal charter, views its contribution as an investment in the US crypto policy process, aiming to advance regulatory clarity for digital assets in a bipartisan manner.