A recently formed crypto-focused political action committee, 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 ahead of the 2026 congressional midterm elections and marks the PAC's initial foray into campaign finance. The Fellowship PAC, which claims to be rooted in transparency, has been linked to Tether, although the company has declined to confirm the connection. The PAC's first expense filing with the Federal Election Commission indicates that the advertising expenditure was made on behalf of Fuller, who recently won a special election.

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 activities have raised questions about potential self-dealing, given the connection between the PAC and Tether US CEO Bo Hines, who co-founded Nxum Group. However, the PAC's disclosures do not currently show a significant stockpile of contributions to support other candidates, despite an earlier announcement that it would be established with pledges of $100 million.

An outside spokesperson for Tether stated that Tether International has no affiliation or oversight over the Fellowship PAC, while the PAC itself has not responded to inquiries about its formation and funding. The PAC's chairman, Jesse Spiro, is the vice president of regulatory affairs for Tether's US arm, further highlighting the connection between the PAC and Tether.

The Fellowship PAC has begun endorsing Republican politicians seeking House and Senate seats, as well as a candidate for governor in South Carolina, and claims to be supporting advocates of emerging digital assets technology. The PAC's first recipient of financial support, Fuller, is an incoming Republican member of the House of Representatives and will require campaign support for the upcoming primary and general election. 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 publicly expressed a position on crypto, but he has the backing of President Donald Trump.

The firm paid by the Fellowship PAC, Nxum Group, was co-founded by Bo Hines, who later became the executive director of the President's Council of Advisers on Digital Assets. The PAC's treasurer, Mitchell Nobel, is an executive at Cantor Fitzgerald, a firm that manages assets for Tether's global operation. When the Fellowship PAC was announced, it was presented as a contrast to previous political engagement efforts, with a focus on transparency and trust. However, the PAC's disclosures have raised questions about its activities and potential self-dealing.

The PAC's relatively small expenditure so far is a drop in the bucket compared to the receipts of the leading crypto super PAC, Fairshake. The US midterm elections are already underway, with many hotly contested primaries past or upcoming. Fairshake has expended millions in the early contests, while the Fellowship PAC has focused its support on Republicans in deep-red regions.

If the Democrats take control of the House, the committees are likely to shift their agenda to challenge Trump's legislative efforts and investigate the administration's actions. The crypto industry may need to build relationships with lawmakers from both parties to influence future legislation.