A newly formed cryptocurrency industry political action committee, known as Fellowship PAC, has launched with $11 million in funding and has already committed $3 million for advertising services through Nxum Group, a firm co-founded by Bo Hines, the CEO of Tether US. According to filings with the Federal Election Commission, $10 million of the PAC's initial funding came from Cantor Fitzgerald, while $1 million was provided by Anchorage Digital, a crypto bank.
The PAC's advertising expenditure has been directed towards supporting Republican candidates in congressional and gubernatorial races. Notably, Nxum Group was founded by Hines, his father, and another partner, with Hines having previously served as a crypto adviser to former President Donald Trump before joining Tether last year. While Fellowship PAC has been associated with Tether since its inception, the majority of its funding originates from Cantor Fitzgerald, which handles the reserves for Tether's stablecoin business. A representative from Tether US did not immediately respond to a request for comment, and a Cantor spokesperson declined to comment on their involvement with the PAC.
Initially, Fellowship PAC announced it would have $100 million at its disposal, rivaling the prominent crypto PAC, Fairshake. The PAC's treasurer is an executive at Cantor. So far, the PAC has allocated $300,000 to support Clay Fuller, the newest member of the U.S. House of Representatives; $850,000 to back Nate Morris for a U.S.
Senate seat in Kentucky; and $350,000 to support incumbent Nebraska Senator Pete Ricketts. The Federal Election Commission filings reveal that Nxum has received $3 million in disbursements for advertising services. Prior to this, Nxum had a limited track record in serving PACs or campaigns, with its most notable contribution being $1 million in billboard ads donated to MAGA Inc. in 2024.
Upon its formation, Fellowship PAC pledged to champion transparency while supporting pro-crypto candidates, with a promised backing of $100 million. However, this level of funding has not yet materialized.
Anchorage Digital described its contribution as an investment in the U.S. crypto policy process, stating it is part of their broader approach to advancing regulatory clarity for digital assets in the United States.
The involvement of Tether executives in Fellowship PAC's activities raises questions about whether Tether or its U.S. arm could make direct contributions to the PAC, given that non-U.S.
entities are not allowed to directly participate in U.S. campaign finances.