A newly established crypto-focused political action committee, the Fellowship PAC, has made its first financial contribution, with $300,000 going towards advertising for Georgia Republican Clay Fuller through Nxum Group, a firm co-founded by Tether US CEO Bo Hines. Despite its claims of transparency, the PAC has not disclosed information about its formation and funding, nor has it responded to questions about the payment that may benefit Hines and his relative. According to campaign finance rules, setting up a super PAC and paying for services is not prohibited as long as the services are provided at fair market value. The Fellowship PAC's advertising effort is in support of House of Representatives candidate Fuller, who recently won a special election and will need campaign support for the upcoming primary and general election.
The PAC's disclosures do not show a significant stockpile of contributions to back other candidates, despite an announcement last year that it would be established with pledges of $100 million. The PAC's ties to Tether have raised questions, with an outside spokesperson for Tether stating that Tether International has no affiliation or oversight over the Fellowship PAC. The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives and has the backing of former President Donald Trump. 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, has ties to Hines, who co-founded the company before taking on his role at Tether US. The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation.
The Fellowship PAC's spending is a drop in the bucket compared to the leading crypto super PAC, Fairshake, which has expended millions in early contests. The US midterm elections are already underway, and the crypto industry may need to rely on support from both parties to advance its legislative agenda.