A newly established political action committee, the Fellowship PAC, has made its first reported expenditure, with $300,000 going towards advertising for Georgia Republican Clay Fuller through Nxum Group. Notably, Nxum Group was co-founded by Bo Hines, who currently serves as the CEO of Tether's US arm and previously worked as an adviser to President Donald Trump. The Fellowship PAC has been linked to Tether, although the company has not confirmed this connection. The PAC's first ad buy was made for Fuller's primary election effort, with the funds being transferred as he won his special election.
Despite announcing its formation with pledges of $100 million, the PAC's current accounts still show no contributions. An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over the Fellowship PAC, but did not respond to further inquiries about Tether US.
The Fellowship PAC has begun listing endorsements for Republican politicians on its social media feed, stating it will support candidates who advocate for emerging digital assets technology. The PAC's first financial recipient, Fuller, is an incoming Republican member of the House of Representatives who has not publicly broadcast his stance on crypto. The money spent by the Fellowship super PAC was an independent expenditure, meaning it was handled without strategizing with Fuller's campaign.
The firm paid by the Fellowship PAC, Nxum, has no federal record as a regular service provider for additional political efforts, apart from contributing billboard advertising valued at $1 million for MAGA Inc. 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 contrast to previous political engagement efforts, aiming to help the broader crypto ecosystem and not narrow or individual interests.
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 yet to fund a major PAC. The amount spent by the Fellowship PAC is still a drop in the bucket compared to the receipts of the leading crypto super PAC, Fairshake, which has expended millions in early contests.