A recently launched cryptocurrency industry political action committee, known as Fellowship PAC, has begun its operations with an $11 million investment and has already reserved $3 million in advertising services through Nxum Group, a company founded by Tether US CEO Bo Hines. According to filings with the Federal Election Commission, the super PAC's initial funding consists of $10 million from Cantor Fitzgerald and $1 million from Anchorage Digital, a crypto bank. The committee is primarily focusing its support on Republican candidates running for Congress and a governorship. The $3 million allocated for advertising has been awarded to Nxum Group, which was founded by Hines, his father, and another partner.
Although Fellowship PAC has been associated with Tether since its inception and has a senior Tether executive as its chairman, the majority of its funding originated from Cantor Fitzgerald, a New York-based financial services giant that handles Tether's stablecoin reserves. Cantor's former CEO, Howard Lutnick, currently serves as the US Commerce Secretary, while his children now manage the business. A representative from Tether US did not immediately respond to a request for comment, and a Cantor spokeswoman declined to comment on the company's involvement with the super PAC.
When Fellowship PAC was first announced, it claimed it would have $100 million in funding, which would rival the leading crypto PAC, Fairshake. The committee's treasurer is an executive at Cantor.
So far, Fellowship PAC has 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, according to Federal Election Commission filings. The filings also disclosed that Nxum has received $3 million in disbursements for advertising services. Prior to this, Nxum did not have a significant track record in serving PACs or campaigns, with its primary claim to fame being a $1 million donation of billboard ads to MAGA Inc.
in 2024, shortly before Hines took a high-profile job at the White House. Upon its formation, Fellowship PAC stated it had $100 million in pledged backing and would advocate for transparency while supporting pro-crypto candidates. However, this level of funding has not yet materialized. Anchorage Digital, the first crypto-native bank to receive a US federal charter, described its contribution as an investment in the US crypto policy process.
The company stated, 'Anchorage Digital has made a corporate contribution to the Fellowship PAC as part of our broader, bipartisan approach to advancing regulatory clarity for digital assets in the United States.' Despite the involvement of Tether executives in Fellowship PAC's work, it is unclear whether Tether or its US arm, Tether US, would be able to make direct contributions to the PAC, as non-US entities are not allowed to be directly involved in US campaign finances.