A recently formed cryptocurrency industry political action committee, known as Fellowship PAC, has launched with an impressive $11 million in funding. Notably, it has already allocated $3 million for advertising services through Nxum Group, a company founded by Tether US CEO Bo Hines.
The super PAC's primary objective is to support Republican candidates in congressional and gubernatorial elections, with initial funding provided by Cantor Fitzgerald and Anchorage Digital, as disclosed in Federal Election Commission filings. The $3 million advertising expenditure has been channeled through Nxum Group, which was established by Hines, his father, and another partner. Although Fellowship PAC has been closely linked to Tether since its inception, the majority of its funding originates from Cantor Fitzgerald, a prominent financial services firm that handles Tether's stablecoin reserve.
A significant portion of the PAC's funding has been allocated to support specific candidates, including Clay Fuller, Nate Morris, and Pete Ricketts, with advertising services provided by Nxum Group, a company with limited prior experience in serving PACs or campaigns. Anchorage Digital has characterized its contribution as an investment in the US crypto policy process, emphasizing its commitment to advancing regulatory clarity for digital assets.
The involvement of Tether executives in Fellowship PAC's activities has raised questions about the potential for direct contributions from Tether or its US arm, given the restrictions on non-US entities participating in US campaign finance.