A recently established crypto-focused political action committee, the Fellowship PAC, has disclosed its first financial outlay, with $300,000 being allocated towards advertising for Republican House of Representatives candidate Clay Fuller through Nxum Group. This firm was co-founded by Bo Hines, who currently heads Tether's US arm and previously served as an advisor to President Donald Trump. The PAC, which has been linked to Tether, has been characterized as a crypto campaign-finance powerhouse, although it had not participated in the US midterm elections until its recent disclosure. The Fellowship PAC has been tight-lipped about its formation and funding, and its payment to Nxum Group may potentially benefit Tether's US CEO and his relative.
According to Michael Beckel, an expert at the Issue One political reform organization, setting up a super PAC and making payments to oneself for services is not against US campaign-finance rules, provided the services are rendered at fair market value. The Fellowship PAC's advertising effort in support of Fuller is its first notable action, and the funds were transferred as Fuller was emerging victorious in his special election. Despite an earlier announcement that the PAC would be established with $100 million in pledges, its current accounts remain at zero. An outside spokesperson for Tether maintained that Tether International has no affiliation or oversight over the Fellowship PAC.
The PAC recently announced its chairman would be Jesse Spiro, the vice president of regulatory affairs for Tether's US arm, and it has begun listing endorsements for Republican politicians on its social media feed. The Fellowship PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives, and the money spent by the PAC was an independent expenditure. As a candidate, Fuller has not publicly stated his position on crypto, but he has received the backing of President Trump. The firm paid by the Fellowship PAC, Nxum, was co-founded by Bo Hines, who later became a leading adviser to President Trump on crypto legislative advances.
There is no federal record of Nxum providing services to other political efforts, apart from its contribution of billboard advertising valued at $1 million 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 transparent and trustworthy entity, aimed at supporting the broader crypto ecosystem rather than individual interests.
It is possible that some or all of the promised $100 million is already in the PAC's coffers, as federal disclosures often lag behind the movement of money. The relatively young Tether US's stablecoin, USAT, has a market cap of about $37 million, suggesting the firm may not have the independent resources to fund a major PAC. According to Beckel, massive spending by an industry is something lawmakers are taking seriously. The Fellowship PAC's expenditure is still a small fraction compared to the receipts of the leading crypto super PAC, Fairshake.
The US midterm elections are already underway, with many primaries having taken place or being imminent. Fairshake has spent millions in the early contests. If the US House is taken over by a Democratic majority, the committees are likely to challenge Trump's legislative efforts and investigate the administration's actions.
The crypto industry may need to cultivate friendships from both parties, and it is not too late for the Fellowship PAC to make a significant impact in the congressional field.