A newly established crypto-focused super PAC, The Fellowship PAC, has disclosed its first expenditure, with $300,000 going towards advertising for Georgia Republican Clay Fuller through Nxum Group, a firm co-founded by Tether US CEO Bo Hines. This development comes as the PAC, which claims to be 'rooted in transparency,' has been tied to Tether, although the company has declined to confirm the connection. The PAC's first expense filing to the Federal Election Commission indicates that the payment may benefit Hines and his relative, sparking questions about potential self-dealing.
According to Michael Beckel, a representative from the political reform organization Issue One, setting up a super PAC and paying oneself for services is not against US campaign-finance rules as long as the services are provided at fair market value. The Fellowship PAC's advertising effort on behalf of Fuller is not yet clear, but the funds were spent just as Fuller was winning his special election. Despite an announcement last year that the PAC would be established with pledges of $100 million, its current accounts show no contributions.
An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over Fellowship PAC, but offered no response to additional questions about Tether US. 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 has begun listing endorsements for Republican politicians seeking House and Senate seats, as well as a candidate for governor in South Carolina, on its social media feed. The PAC claims it will begin actively supporting candidates who recognize the importance 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, but it is unclear whether he will receive further support. The money spent by the Fellowship super PAC was an independent expenditure, meaning it had to be handled without strategizing with Fuller's campaign. As a candidate, Fuller has not broadcast a position on crypto, but he does have the backing of Trump.
The firm paid by Fellowship PAC, Nxum, included Bo Hines among its owners when he filed ethics disclosures last year as a White House official. There is no federal record for Nxum as a regular service provider for additional political efforts, but the company did contribute 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 Fellowship was announced as a new PAC last year, it was presented as a contrast from previous political engagement, with a focus on transparency and trust.
It is possible that some or all of the promised $100 million is in the PAC's coffers already, but federal disclosures typically trail behind the movements 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 yet to fund a major PAC.
According to Beckel, the PAC's spending may be a 'paper tiger' that never materializes, but lawmakers are taking note of massive spending by the industry. The rival Fairshake crypto super PAC has expended millions in the early contests, and the US midterm elections are already well underway.
If the US House is taken over by a Democratic majority, the committees will likely shift their agenda to challenge Trump's legislative efforts and investigate the administration's actions. The crypto industry may need a lot of friends from both parties, and it's not too late for Fellowship to make a splash in a congressional field that's likely to have major significance for future crypto legislation.