A newly formed crypto-focused super PAC, The Fellowship PAC, has made its first major expenditure, spending $300,000 on 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 Fellowship PAC's chairman, Jesse Spiro, is a Tether US executive, and the PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, which manages assets for Tether's global operation. The PAC's first financial expenditure has raised questions about potential self-dealing, but according to Michael Beckel at Issue One, there is no blanket prohibition on self-dealing in political committees as long as services are provided at fair-market rates.
The Fellowship PAC has not responded to questions about its formation, funding, or the payment to Nxum Group, which may benefit Tether US CEO Bo Hines and his relative. The PAC's disclosures do not yet show a significant stockpile of contributions, despite an announcement last year that it would be established with pledges of $100 million. The Fellowship PAC has begun endorsing Republican politicians seeking House and Senate seats, as well as a candidate for governor in South Carolina, and has stated that it will support advocates of emerging digital assets technology.
The PAC's first recipient of financial support, Clay Fuller, is an incoming Republican member of the House of Representatives who has not broadcast a position on crypto. 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 Fellowship PAC, Nxum, has ties to Bo Hines, who co-founded the company and later worked as a leading adviser to President Donald Trump, pushing for crypto legislative advances. The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, which has ties to the Trump administration. The Fellowship PAC's activities have raised questions about the potential influence of the crypto industry on US politics and the role of Tether and its executives in shaping this influence.