A newly established political action committee, The Fellowship PAC, has made its first major expenditure, with $300,000 going towards advertising for Republican candidate Clay Fuller through Nxum Group, a firm co-founded by Bo Hines, the CEO of Tether's US arm and a former adviser to President Donald Trump. The PAC, which claims to be rooted in transparency, has not disclosed its funding sources or responded to questions about the payment that may benefit Hines and his relative.
According to Michael Beckel, an expert at Issue One, a political reform organization, setting up a super PAC and paying 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 for Fuller, who recently won a special election, is not yet clear, but the funds were spent just as he was winning his primary election.
Despite announcing last year that it would be established with pledges of $100 million, the PAC's current accounts show no stockpile of contributions to back other candidates, with its accounts still at zero. An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over Fellowship PAC, but did not respond to further inquiries 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, and began listing endorsements for Republican politicians on its social media feed. The PAC claims it will support candidates who recognize the importance of emerging digital assets technology, but its first recipient of financial support, Fuller, has not broadcast a position on crypto and does not have a grade at Stand With Crypto, an advocacy group that evaluates candidates' views.
The firm paid by Fellowship PAC, Nxum, was co-founded by Hines, who worked as a leading adviser to President Trump and helped push crypto legislative advances. There is no federal record of Nxum as a regular service provider for additional political efforts, but it 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, aiming to help the broader crypto ecosystem and not narrow or individual interests. However, the PAC's disclosures do not yet demonstrate a stockpile of contributions to back other candidates, and it is unclear whether the promised $100 million is in the PAC's coffers. 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, massive spending by an industry is something that lawmakers are taking seriously, but it is also possible that some or all of the promised $100 million is in the PAC's coffers already, which will be made public when contributions are disclosed.