Tether-Linked Super PAC Makes First Ad Buy from Firm Co-Founded by Tether's US CEO

The Fellowship PAC, a cryptocurrency-focused political action committee, has disclosed its first expenditure ahead of the 2026 US congressional midterm elections. The $300,000 spent by the PAC was used to purchase advertising for Republican candidate Clay Fuller through Nxum Group, a firm co-founded by Bo Hines, who now serves as the CEO of Tether's US arm.

The PAC, which claims to be 'rooted in transparency', has not responded to questions about its formation and funding, nor the payment that may benefit Hines and his relative. According to Michael Beckel, an expert at Issue One, a political reform organization, there is no blanket prohibition on self-dealing in political committees like this, as long as the services provided are bonafide and the rates paid are fair-market rates. The Fellowship PAC's advertising effort on behalf of Fuller is not yet clear, apart from the disclosure made to the Federal Election Commission.

The PAC's disclosures do not yet demonstrate a significant stockpile of contributions to back other candidates, despite an announcement last year that it would be established with pledges of $100 million. An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over the Fellowship PAC.

The PAC became active again this month when it announced its chairman would be Jesse Spiro, the vice president of regulatory affairs for Tether's US arm. The Fellowship PAC says it will begin actively supporting candidates aligned with its vision of fostering economic growth and reinforcing the US as the global leader in next-generation financial infrastructure. The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives. The money spent by the Fellowship super PAC was an independent expenditure, meaning it had to be handled without strategizing with Fuller's campaign.

The firm paid by the Fellowship PAC, Nxum, was co-founded by Bo Hines, who filed ethics disclosures last year as a White House official. It is unclear whether financial ties remain between Hines and Nxum. 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 last year, it was presented as a contrast to previous political engagement, aiming to help the broader cryptocurrency ecosystem and not 'narrow or individual interests'. The PAC's spending is still a drop in the bucket compared to the receipts of the leading cryptocurrency super PAC, Fairshake.

The US midterm elections are already underway, with many hotly contested primaries past or about to happen. Fairshake has expended millions in the early contests.

If the US House is taken over by a Democratic majority, the committees there will likely shift their agenda to challenge Trump's legislative efforts and investigate the administration's actions.